LGBTQ Directors

31 Pages Posted: 10 Nov 2023

See all articles by Timothée Waxin

Timothée Waxin

Léonard de Vinci Pôle Universitaire

Date Written: October 15, 2023


We examine investor responses to board diversity using a hand-collected sample of LGBTQ+ director announcements in U.S. public firms. We find that investors generally respond negatively to the announcements of LGBTQ+ directors, with an average 1.06% drop in stock prices. In the cross-section analysis, the negative effect is significantly amplified when the press release indicates that the director is an advocate for diversity, equity and inclusiveness, and if the director serves on the nomination committee, while board size mitigates the effect. Markets react less severely to the announcements of LGBTQ+ directors in U.S. states with larger LGBTQ+ equality.

Keywords: LGBTQ+ directors, Corporate performance, Corporate governance

JEL Classification: G32, G34

Suggested Citation

Waxin, Timothée, LGBTQ Directors (October 15, 2023). Available at SSRN: or

Timothée Waxin (Contact Author)

Léonard de Vinci Pôle Universitaire ( email )


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