Corporate Discrimination, Competition, and Shareholder Wealth

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See all articles by Casey Dougal

Casey Dougal

Florida State University

Thomas P. Griffin

Villanova University - Department of Finance & Real Estate

Irena Hutton

Florida State University - College of Business

Date Written: November 19, 2021

Abstract

We study novel data on the universe of employment discrimination lawsuits filed in federal court against U.S. public corporations between 1992 and 2018. Shareholder value drops by $30 million, on average, in the three days surrounding a discrimination lawsuit filing. However, we find no evidence that discrimination rates are related to product market competition, financial resources, governance, or CEO turnover. Instead, workplace discrimination is highly persistent and correlates with slow-moving proxies of firm culture, such as headquarter location. These results suggest that corporate discrimination is largely determined by the beliefs and preferences of employees, rather than a firm’s economic environment.

Keywords: Discrimination, Firm value, Competition, Corporate governance, CEO turnover

JEL Classification: G30, G32, G34, J71, K31

Suggested Citation

Dougal, Casey and Griffin, Thomas and Hutton, Irena, Corporate Discrimination, Competition, and Shareholder Wealth (November 19, 2021). Available at SSRN: https://ssrn.com/abstract=

Casey Dougal

Florida State University ( email )

Tallahasse, FL 32306
United States

Thomas Griffin (Contact Author)

Villanova University - Department of Finance & Real Estate ( email )

United States

HOME PAGE: http://www.thomaspgriffin.com

Irena Hutton

Florida State University - College of Business ( email )

821 Academic Way
Tallahassee, FL 32306-1110
United States
850.645.1520 (Phone)

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