How Does the Stock Market Value Female Directors? International Evidence

2020/08/18 by Thomas Loy, Thomas R. Loy, Hendrik Rupertus · 1 citation
Social Sciences · Business, Management and Accounting · #Gender Diversity and Inequality #Corporate Finance and Governance #Gender Politics and Representation

paper · pdf · doi:10.1177/0007650320949839

Abstract

We analyze investors’ perception and long-term effects of board gender diversity on firms’ stock market performance in an international setting. Our results, controlling for the endogenous nature of board compositions, indicate that female board representation neither improves nor reduces firms’ long-term stock performance. Hence, we argue that it is imperative to go beyond the conventional thinking in terms of the business case for gender diversity and broaden the perspective also to incorporate societal and ethical aspects in the strive to board gender equality. Even more so, as our results show that it does not entail reduced shareholder value, which the literature on mandatory gender quotas commonly seems to suggest.

Citations

• The central role of the propensity score in observational studies for causal effects
• Women on Corporate Boards

Cited by

• Firm-stakeholder tension as an antecedent of female board representation in the Middle East and North Africa

Related

• Gender Diversity on Corporate Boards: Do Women Contribute Unique Skills?
• Gender Diversity and Board Performance: Women's Experiences and Perspectives
• The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation *
• Female Leadership and Gender Gap within Firms: Evidence from an Italian Board Reform
• Board Gender Diversity and Corporate Innovation: International Evidence