Investor Reaction to Women Directors
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.
Firm performance, Gender diversity, Investors' reactions, Women directors
Finance and Financial Management | Portfolio and Security Analysis
Journal of Business Research
Kang, E.; DING, David K.; and Charoenwong, C..
Investor Reaction to Women Directors. (2009). Journal of Business Research. 63, (8), 888-894. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/1761