#MeToo Meets the Mutual Fund Industry: Productivity Effects of Sexual Harassment

20 Pages Posted: 30 Aug 2019

See all articles by Gjergji Cici

Gjergji Cici

University of Kansas - School of Business

Mario Hendriock

University of Cologne - Department of Finance; University of Cologne - Centre for Financial Research (CFR)

Stefan Jaspersen

University of Cologne - Centre for Financial Research (CFR); University of Cologne - Department of Finance

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR)

Date Written: August 1, 2019

Abstract

Sexual harassment, a widespread problem in the workplace, arguably keeps female employees from optimally employing their human capital. We show that removing or diminishing this friction improves productivity. Specifically, using the male-dominated fund industry as our testing ground, we show that productivity of female mutual fund managers significantly increased after the Harvey Weinstein scandal and the onset of the #MeToo movement. Evidence from lawsuits and organizational changes at several fund companies also suggests that reducing the threat of sexual harassment improves productivity. Our results have important implications for the policy debate on workforce diversity and costs of sexual harassment.

Keywords: Sexual Harassment, Mutual Fund Performance, Gender Discrimination, Organizational Frictions, Human Capital

JEL Classification: G23, J21, J71, M50

Suggested Citation

Cici, Gjergji and Hendriock, Mario and Jaspersen, Stefan and Kempf, Alexander, #MeToo Meets the Mutual Fund Industry: Productivity Effects of Sexual Harassment (August 1, 2019). Available at SSRN: https://ssrn.com/abstract=3445403 or http://dx.doi.org/10.2139/ssrn.3445403

Gjergji Cici (Contact Author)

University of Kansas - School of Business ( email )

Capitol Federal Hall
1654 Naismith Drive
Lawrence, KS 66045
United States
785-864-3873 (Phone)

HOME PAGE: http://business.ku.edu/gjergji-cici

Mario Hendriock

University of Cologne - Department of Finance ( email )

Cologne, 50923
Germany

University of Cologne - Centre for Financial Research (CFR) ( email )

Albertus-Magnus Platz
Cologne, 50923
Germany

Stefan Jaspersen

University of Cologne - Centre for Financial Research (CFR) ( email )

Albertus-Magnus Platz
Cologne, 50923
Germany

University of Cologne - Department of Finance ( email )

Albertus-Magnus-Platz
Cologne, 50923
Germany

Alexander Kempf

University of Cologne - Department of Finance & Centre for Financial Research (CFR) ( email )

Cologne, 50923
Germany
+49 221 470 2714 (Phone)
+49 221 470 3992 (Fax)

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