Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 18, 2023 erstellt
Beschreibung:
We show that female directors are associated with higher equity undervaluation after controlling for the effects of female managers, firm performance, corporate governance, risk, dispersion in analysts’ earnings forecasts, firm size, stock price informativeness and earnings quality. This association is less pronounced after increase in societal awareness about female directors. Our findings are robust to the use of alternative measures of key variables and various tests of endogeneity. We further find that female directors’ committee membership, committee chair role, board tenure and board experience are positively associated with equity undervaluation. Additional results show that female directors’ age and ethnicity also impact equity undervaluation, and the undervaluation of female directors mostly occurs for firms that operate in male-dominated industries. Our results collectively suggest that investors’ detrimental gender role stereotyping of female directors contribute to equity undervaluation of firms with female directors. The detrimental stereotyping of female directors is less pronounced after investors become more aware about the benefits of female directors. Therefore, our findings provide insights to policy makers and suggests that further increase in awareness about the benefits of female directors is essential. Policy makers may also consider taking appropriate actions to further minimize gender stereotyping of female directors