Shareholder Wealth Effects of Policies Promoting Women on Boards: Evidence from Germany
34 Pages Posted: 26 Jul 2017 Last revised: 16 Feb 2018
Date Written: December 1, 2017
The study outlines a typology of different policies promoting women on boards and discusses their potential effects on shareholder value. Furthermore, announcements of the policy proposals discussed in Germany are classified according to the typology and their impact is analyzed using event study methodology. One key event produces negative significant cumulative abnormal stock returns (CARs) of approximately two percentage points. Further regression analysis of the CARs reveals that companies which are subject to the upcoming quota exhibited more pronounced significant negative CARs around the event days. Thus, the implementation of a mandated quota was costly for shareholders.
Keywords: gender quota, shareholder value, corporate governance, women on boards
JEL Classification: G34, G38, J20, J48
Suggested Citation: Suggested Citation