Premium
Leadership change and shareholder value: How markets react to the appointments of women
Author(s) -
Cook Alison,
Glass Christy
Publication year - 2011
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20438
Subject(s) - share price , shareholder , stock price , corporation , stock (firearms) , business , stock market , monetary economics , economics , financial economics , demographic economics , marketing , accounting , stock exchange , finance , corporate governance , mechanical engineering , paleontology , horse , series (stratigraphy) , engineering , biology
Abstract This study examines whether the appointment of women into senior leadership positions has a more positive effect on share price than the appointment of men into equivalent positions. Our dependent variable is the degree of change in share price following the announcement of men and women into senior leadership positions. Although market reactions to corporate events represent a complex process, we argue that changes in stock price represent a barometer for how investors assess the decision's potential effect on a corporation's short‐ and long‐term economic viability. We find a significant spike in stock price following the announcement of women into top leadership positions. The size and direction of change in stock price, however, is moderated by the gender composition of the industry. © 2011 Wiley Periodicals, Inc.