Share Buybacks and Gender Diversity

33 Pages Posted: 25 Jul 2016 Last revised: 28 Jun 2017

See all articles by Theodoros Evgeniou

Theodoros Evgeniou


Theo Vermaelen

INSEAD - Finance; European Corporate Governance Institute (ECGI)

Date Written: June 27, 2017


We find that board gender diversity increases the likelihood that firms announce a buy-back but long-term excess returns are signficantly smaller when there is larger female representation on the board. This is consistent with the governance hypothesis: gender diversity makes it more likely that firms buy back stock to reduce agency costs of free cash flow. But because gender diversity improves the quality of public information disclosure repurchases are less driven by market timing. Moreover, when the quality of monitoring is lower because board members sit on many other boards, long-term excess returns are larger.

Keywords: Gender Diversity, Share Buybacks, Market Timing, Ethics

JEL Classification: G3

Suggested Citation

Evgeniou, Theodoros and Vermaelen, Theo, Share Buybacks and Gender Diversity (June 27, 2017). INSEAD Working Paper No. 2017/43/DSC/FIN, European Corporate Governance Institute (ECGI) - Finance Working Paper No. 493/2017, Available at SSRN: or

Theodoros Evgeniou (Contact Author)

INSEAD ( email )

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Theo Vermaelen

INSEAD - Finance ( email )

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European Corporate Governance Institute (ECGI) ( email )

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