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Does board gender diversity improve the informativeness of stock prices?
journal contribution
posted on 2011-04-01, 00:00 authored by Ferdinand GulFerdinand Gul, Bin Srinidhi, Anthony NgWe show that stock prices of firms with gender-diverse boards reflect more firm-specific information after controlling for corporate governance, earnings quality, institutional ownership and acquisition activity. Further, we show that the relationship is stronger for firms with weak corporate governance suggesting that gender-diverse boards could act as a substitute mechanism for corporate governance that would be otherwise weak. The results are robust to alternative specifications of informativeness and gender diversity and to sensitivity tests controlling for time-invariant firm characteristics and alternative measures of stock price informativeness. We also find that gender diversity improves stock price informativeness through the mechanism of increased public disclosure in large firms and by encouraging private information collection in small firms. © 2011 Elsevier B.V.
History
Journal
Journal of accounting and economicsVolume
51Issue
3Pagination
314 - 338Publisher
ElsevierLocation
Amsterdam, The NetherlandsPublisher DOI
ISSN
0165-4101Language
engPublication classification
C1.1 Refereed article in a scholarly journal; C Journal articleCopyright notice
2011, ElsevierUsage metrics
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