Gender, Culture, and Firm Value: Evidence from the Harvey Weinstein Scandal and the #MeToo Movement
47 Pages Posted: 2 Oct 2019 Last revised: 7 May 2020
Date Written: April 24, 2020
During the revelation of the Weinstein scandal and the emergence of the #MeToo movement, firms with a culture of ethical behavior toward women, proxied by having women among their five highest paid executives, earned excess returns of close to 1.5% per highly-paid female executive. These returns were followed by positive revisions in analyst earnings forecasts. Firms in industries with more women executives, or headquartered in states with lower levels of sexism or gender pay gap, also earned excess returns of around 1.5% during these event windows. There is no relation between event returns and female board membership.
Keywords: Corporate culture, top executive, gender, societal culture, firm value, #MeToo
JEL Classification: M14, G30
Suggested Citation: Suggested Citation