DP14703 Gender, Culture, and Firm Value: Evidence from the Harvey Weinstein Scandal and the #MeToo Movement

Author(s): Karl Lins, Lukas Roth, Henri Servaes, Ane Tamayo
Publication Date: May 2020
Programme Areas: Financial Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=14703

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.