The capital market effects of board announcements regarding female board representation: a European cross-country study with a focus on institutional characteristics
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2020-07-23
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en
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Many studies have focused on the capital market effects of female board representation and the share price behaviour in specific. However, few cross-country studies have focused on the institutional characteristics of specific countries. While there is a body of literature indicating that gender diverse organisations perform better than their peers, stock market reactions still differ. This thesis deploys an event-study methodology in order to observe the short-term share price reactions through an analysis of abnormal returns. The sample is then categorised based on (1) the presence of a binding corporate gender quota in a country, and (2) the cultural dimension of a country’s future orientation. Both parametric and non-parametric tests are conducted. The results indicate that overall, stock markets perceive announcements of female board representation as positive. Additionally, some evidence is found that stock markets in countries without binding quotas react more positive than their binding quota-counterparts. No such effect is found when countries are categorised by their future orientation. The results of this study contribute to the literature by adding institutional characteristics to a growing body of literature on female board representation.
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Faculteit der Managementwetenschappen