Thomas Loy (Professorship of Management Accounting & Information Systems), jointly with Hendrik Rupertus (University of Bayreuth), has published an article revolving around the question how international stock markets value gender diverse boards in the long-term. The paper is forthcoming in the renowned journal „Business & Society“, which discusses important societal issues and their relation to business.
We analyze investors’ perception and long-term effects of board gender diversity on firms’ stock market performance in an international setting. Our results, controlling for the endogenous nature of board compositions, indicate that female board representation neither improves nor reduces firms’ long-term stock performance. Hence, we argue that it is imperative to go beyond the conventional thinking in terms of the business case for gender diversity and broaden the perspective also to incorporate societal and ethical aspects in the strive to board gender equality. Even more so, as our results show that it does not entail reduced shareholder value, which the literature on mandatory gender quotas commonly seems to suggest.
The paper can be downloaded free of charge following this Link: https://journals.sagepub.com/doi/10.1177/0007650320949839