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 :

September 01 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 corporate culture that does not discriminate on the basis of sex, proxied by having women among the five highest paid executives, earn excess returns of 1.6%. These returns are followed by positive revisions in analyst earnings forecasts.

The returns increase to 3.2% in industries with few women executives, and 2.1% and 2.7% for firms headquartered in states with high levels of sexism and a high gender pay gap, respectively. Firms in industries with more women in executive positions and headquartered in states with low levels of sexism or a low gender pay gap also earn positive abnormal returns during this period. Our evidence attests to the value of having a non-sexist culture.

Authors

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