The Market Impact of the Appointment of Female Directors in Listed Companies in New Zealand

Journal of Administrative and Business Studies, 2018, 4(5): 246-255

10 Pages Posted: 16 Feb 2021

See all articles by David K. Ding

David K. Ding

Singapore Management University - Lee Kong Chian School of Business; Massey University - School of Economics and Finance

Echo Su Chen

Massey University - School of Economics and Finance

Date Written: October 10, 2018

Abstract

This study examines investor reaction to the appointment of female directors in New Zealand-listed companies. Using the event study method, we find that female directors tend to be appointed as independent directors rather than in a CEO role. The results reveal that female board appointments are generally negatively associated with stock performance. This study captures both the gender diversity arising in New Zealand companies and the performance of stock price resulting from the reaction of investors to the different positions of female directors. The evidence of a decrease in market performance is shown by the negative cumulative average abnormal returns from the announcements of women appointees to the board.

Suggested Citation

Ding, David K. and Chen, Echo Su, The Market Impact of the Appointment of Female Directors in Listed Companies in New Zealand (October 10, 2018). Journal of Administrative and Business Studies, 2018, 4(5): 246-255, Available at SSRN: https://ssrn.com/abstract=3744804

David K. Ding (Contact Author)

Singapore Management University - Lee Kong Chian School of Business ( email )

50 Stamford Road
Singapore, 178899
Singapore
+65 6828-0245 (Phone)

Massey University - School of Economics and Finance ( email )

Auckland
New Zealand

Echo Su Chen

Massey University - School of Economics and Finance ( email )

Private Bag 11-222
Auckland, 30974
New Zealand

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