How Does the Stock Market Value Female Directors? International Evidence
Forthcoming in Business & Society
Posted: 5 Mar 2018 Last revised: 7 Jul 2020
Date Written: May 9, 2020
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 in order 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.
Keywords: Corporate Governance, Board of Directors, Gender Diversity, Shareholder Value
JEL Classification: G11, G30, G34, J16
Suggested Citation: Suggested Citation