Gender, Culture, and Firm Value: Evidence from the Harvey Weinstein Scandal and the #MeToo Movement

Gender, Culture, and Firm Value: Evidence from the Harvey Weinstein Scandal and the #MeToo Movement

Karl Lins, Lukas Roth, Henri Servaes, Ane Tamayo

Series number :

Serial Number: 
679/2020

Date posted :

May 07 2020

Last revised :

May 07 2020
SSRN Share

Keywords

  • corporate culture • 
  • top executive • 
  • Gender • 
  • societal culture • 
  • firm value • 
  • #MeToo

During the revelation of the Weinstein scandal and the emergence of the #MeToo movement, firms with a culture of ethical behavior toward women, proxied by having women among their five highest paid executives, earned excess returns of close to 1.5% per highly-paid female executive. These returns were followed by positive revisions in analyst earnings forecasts.

Firms in industries with more women executives, or headquartered in states with lower levels of sexism or gender pay gap, also earned excess returns of around 1.5% during these event windows. There is no relation between event returns and female board membership.
 

Authors

Professor
Real name:
Karl Lins
University of Utah
Real name:
Lukas Roth
Real name:
Ane Tamayo