Stock market reactions on female board announcements in countries with different gender quotas
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2022-07-08
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en
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The stock market remains to be prone to gender biases, even though the benefits of gender diversity on the board has been supported. Governments are introducing gender quotas in order to tackle this problem, yet implementing either mandatory and non-mandatory quotas has a different effect on the markets. In order to obtain a better understanding of market reactions to female board announcements, this study analyses abnormal returns in different types of gender quotas. A dataset of 694 announcements, provides a dataset with cumulative abnormal returns for different European countries between 2010 through 2016. This research finds evidence of market reactions on female announcements being negative, in which the type of quota matters. The size of the board appears to have positive impact on the cumulative abnormal returns. Furthermore, cultural differences between countries appear to be of influence on the market reaction. These results might indicate investor biases, and aims to contribute towards improving gender diversity in the boardroom.
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Faculteit der Managementwetenschappen