Forced Board Changes: Evidence from Norway
34 Pages Posted: 25 Mar 2011 Last revised: 29 Aug 2011
Date Written: March 9, 2011
Abstract
The recently introduced gender quota on Norwegian corporate boards dramatically increased the share of female directors.This reform offers a natural experiment to investigate changes in corporate governance from forced increases in gender diversity, and whether these changes in turn impact firm performance.I find that investors anticipate the new directors to be more effective in firms with less information asymmetry between insiders of the firm and outsiders. Firms with low information asymmetry experience positive and significant cumulative abnormal returns (CAR) at the introduction of the quota, whereas firms with high information asymmetry show negative but insignificant CAR.
Keywords: Natural experiment, Corporate governance
JEL Classification: G34
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation
By Kenneth R. Ahern and Amy K. Dittmar
-
Director Gender and Mergers and Acquisitions
By Maurice D. Levi, Kai Li, ...
-
A Female Style in Corporate Leadership? Evidence from Quotas
By David A. Matsa and Amalia R. Miller
-
Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership
By David A. Matsa and Amalia R. Miller
-
Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership
By David A. Matsa and Amalia R. Miller
-
Workforce Reductions at Women-Owned Businesses in the United States
By David A. Matsa and Amalia R. Miller
-
By Francine D. Blau, Peter Brummund, ...
-
By Francine D. Blau, Peter Brummund, ...
-
Going Overboard? On Busy Directors and Firm Value
By George D. Cashman, Stuart Gillan, ...
-
Female Leadership and Gender Equity: Evidence from Plant Closure
By Geoffrey A. Tate and Liu Yang