Gender Diversity: From Wall Street to Main Street
48 Pages Posted: 1 Dec 2020 Last revised: 13 Sep 2021
Date Written: October 8, 2020
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: Suggested Citation