Title

Investor Reaction to Women Directors

Publication Type

Journal Article

Version

Postprint

Publication Date

2009

Abstract

Existing studies on women directorships present equivocal results on the association between appointing women directors and firm performance. These studies tend to focus on western countries and largely ignore investors' reactions to such appointments. This paper applies the financial event study method and finds that investors generally respond positively to the appointment of women directors in Singaporean firms. Regression analyses also reveal that investors are most receptive when the women are independent directors and are least receptive when the directors assume the CEO role. This study not only tests the theory of gender diversity in an Asian context but also examines whether investors react systematically to the different positions that women directors hold on corporate boards, a question that has received little attention in prior studies.

Keywords

Firm performance, Gender diversity, Investors' reactions, Women directors

Discipline

Finance and Financial Management | Portfolio and Security Analysis

Research Areas

Finance

Publication

Journal of Business Research

Volume

63

Issue

8

First Page

888

Last Page

894

ISSN

0148-2963

Identifier

10.1016/j.jbusres.2009.06.008

Publisher

Elsevier