While extensive research documents gender inequality in corporate leadership positions, less attention has been paid to how female CEOs are evaluated once they break through the glass ceiling. Using quarterly earnings per share (EPS) forecasts from 2000 to 2021, we examine whether equity analysts differentially evaluate firms with female CEOs compared to those with male CEOs. We find that, on average, female-led firms are not differentially evaluated compared to male-led firms. However, female-led firms with higher levels of information asymmetry are more likely to be underestimated, especially if a higher share of inexperienced analysts cover the firm. Moreover, analysts who perform poorly in evaluating female-led firms early in their careers are more likely to reduce their coverage of such firms over time, a pattern not observed for other types of firms that are hard to evaluate. Our findings suggest that professional expertise influences analysts' ability to evaluate female CEOs objectively, with implications for the broader challenges women face in corporate leadership.
