Gender Diversity: From Wall Street to Main Street

48 Pages Posted: 1 Dec 2020 Last revised: 13 May 2021

See all articles by Yongqiang Chu

Yongqiang Chu

Belk College of Business, UNC Charlotte

Daxuan Zhao

Renmin University of China - School of Business

Xinming Li

University of South Carolina, Darla Moore School of Business, Department of Finance

Date Written: October 8, 2020

Abstract

Examining the effect of hedge fund activism on gender diversity, we find that the number of female directors decreases after a firm is targeted by hedge fund activism. Using the employment history data from BoardEx, we find that activist hedge funds are more likely to appoint people with finance backgrounds to the boards of target firms. And the newly appointed finance-background directors are almost all male because of the lack of diversity in the finance industry. The lack of gender diversity of the hedge funds' networks also helps explain the impact of hedge fund activism on gender diversity on the board.

Keywords: Gender Diversity, Board of Directors, Hedge Fund Activism

JEL Classification: G23, G34, J16

Suggested Citation

Chu, Yongqiang and Zhao, Daxuan and Li, Xinming, Gender Diversity: From Wall Street to Main Street (October 8, 2020). Available at SSRN: https://ssrn.com/abstract=3707537 or http://dx.doi.org/10.2139/ssrn.3707537

Yongqiang Chu (Contact Author)

Belk College of Business, UNC Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States
7046877695 (Phone)

Daxuan Zhao

Renmin University of China - School of Business ( email )

Beijing
China

HOME PAGE: http://daxuanzhao.weebly.com/

Xinming Li

University of South Carolina, Darla Moore School of Business, Department of Finance ( email )

1014 Greene Street
Columbia, SC 29208
United States

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