Board Gender Diversity and Firm Value in Times of Crisis: Evidence from the COVID-19 Pandemic

47 Pages Posted: 28 Jun 2021 Last revised: 10 Sep 2021

See all articles by Leon Zolotoy

Leon Zolotoy

University of Melbourne - Melbourne Business School

Farida Akhtar

Macquarie University

Madhu Veeraraghavan

T.A. PAI Management Institute, Finance Area; T A Pai Management Institute, Manipal

Date Written: September 10, 2021

Abstract

We provide robust evidence that stocks of the firms with gender-diverse boards experienced higher abnormal returns during the period when negative market sentiment induced by the outbreak of the COVID-19 pandemic was at its peak. Further, we find that the documented effect was amplified among financially constrained firms, firms with longer cash conversion cycle, and firms with high information uncertainty, while was mitigated among firms led by more effective management teams. Our findings are consistent with the view that market interpreted board gender diversity as a positive signal regarding firms’ ability to weather the economic implications of the COVID-19 pandemic.

Keywords: Board gender diversity, Abnormal returns, Crisis, COVID-19

JEL Classification: G14, G30, G40

Suggested Citation

Zolotoy, Leon and Akhtar, Farida and Veeraraghavan, Madhu, Board Gender Diversity and Firm Value in Times of Crisis: Evidence from the COVID-19 Pandemic (September 10, 2021). Available at SSRN: https://ssrn.com/abstract=3869585 or http://dx.doi.org/10.2139/ssrn.3869585

Leon Zolotoy (Contact Author)

University of Melbourne - Melbourne Business School ( email )

200 Leicester Street
Carlton, Victoria 3053 3186
Australia

Farida Akhtar

Macquarie University

North Ryde
Sydney, New South Wales 2109
Australia

Madhu Veeraraghavan

T.A. PAI Management Institute, Finance Area ( email )

Bangalore
Manipal, Karnataka 576104
India
+91-820-2701030 (Phone)

T A Pai Management Institute, Manipal ( email )

TAPMI Canpus
Manipal
Manipal, Manipal 576104
India
+91-820-2701020 (Phone)

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