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

Sexism, 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 :

December 10 2020
SSRN Share

Keywords

  • Sexism • 
  • culture • 
  • female leadership • 
  • firm value

During the Harvey Weinstein and #MeToo events, firms with a non-sexist corporate culture, 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.

Returns for female-led firms increase to 3.2% in industries with few women executives, and 2.1% and 2.7% if headquartered in states with a high level of sexism or gender pay gap, respectively. Firms in industries with more women executives or headquartered in less sexist states also earn positive abnormal returns. Our evidence attests to the value of having a non-sexist culture.

View full abstract

Authors

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