How Does the Stock Market Value Female Directors? International Evidence

Forthcoming in Business & Society;

Posted: 5 Mar 2018 Last revised: 19 Aug 2020

See all articles by Thomas R. Loy

Thomas R. Loy

University of Bremen

Hendrik Rupertus

University of Bayreuth

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

Loy, Thomas R. and Rupertus, Hendrik, How Does the Stock Market Value Female Directors? International Evidence (May 9, 2020). Forthcoming in Business & Society;, Available at SSRN: or

Thomas R. Loy (Contact Author)

University of Bremen ( email )

Universitaetsallee GW I
Bremen, D-28334

Hendrik Rupertus

University of Bayreuth ( email )


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