Female Leadership and Value Creation: Evidence from London Stock Exchange

Trinh, V. Q., Pham, H. T., Pham, T. N., & Nguyen, G. T. (2018). Female Leadership and Value Creation: Evidence from London Stock Exchange. Corporate Ownership & Control, 15(2-1), 248-257. doi: 10.22495/cocv15i2c1p10

10 Pages Posted: 8 Mar 2018

See all articles by Vu Quang Trinh

Vu Quang Trinh

University of Newcastle

Huyen Thu Thi Pham

University of Northumbria at Newcastle

Thinh Ngoc Pham

Ton Duc Thang University

Giang Thuy Nguyen

Hoa Sen University

Date Written: Feb 20, 2018

Abstract

This study examines the effects of female leadership, at both board-level and individual-level, on the corporate value of UK FTSE100 stocks. United Kingdom is a valuable sample for this research as the UK governance sets the goal that at least a third of UK boardroom positions should be held by women by the end of 2020. Using the GMM approach with a dataset of 96 publicly firms from 2006 to 2016; our analysis reveals strong evidence that the existence of female directors on board is positively associated with firm value (Tobin’ Q). Testing for the female director positions, we interestingly found the competing results: the relation between the female chairman and firm value is significantly positive whilst there exists an adverse link between female CEO and firm value. The findings imply a significant effect of quota laws for gender diversity of boards of directors and female directors’ positions on UK corporate market value.

Keywords: Female Leadership, FTSE100, Gender Diversity, Firm Value, Chair, CEO

JEL Classification: C23, G34

Suggested Citation

Trinh, Vu Quang and Pham, Huyen Thu Thi and Pham, Thinh Ngoc and Nguyen, Giang Thuy, Female Leadership and Value Creation: Evidence from London Stock Exchange (Feb 20, 2018). Trinh, V. Q., Pham, H. T., Pham, T. N., & Nguyen, G. T. (2018). Female Leadership and Value Creation: Evidence from London Stock Exchange. Corporate Ownership & Control, 15(2-1), 248-257. doi: 10.22495/cocv15i2c1p10. Available at SSRN: https://ssrn.com/abstract=3133226

Vu Quang Trinh (Contact Author)

University of Newcastle ( email )

5 Barrack Road
Devonshire Building
NEWCASTLE UPON TYNE, NE1 7RU
United Kingdom

Huyen Thu Thi Pham

University of Northumbria at Newcastle ( email )

Pandon Building
208, City Campus East-1
Newcastle-Upon-Tyne, Newcastle NE1 8ST
United Kingdom

Thinh Ngoc Pham

Ton Duc Thang University ( email )

19 Nguyen Huu Tho
District 7
Ho Chi Minh City, 0848
Vietnam

Giang Thuy Nguyen

Hoa Sen University ( email )

No 8, Nguyen Van Trang St. District 1
Ho CHi Minh City, 0084
Vietnam

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