The market impact of the appointment of female directors in listed companies in New Zealand

This study examines investor reaction to the appointment of female directors in New Zealand-listed companies. Using the event study method, we ϐind that female directors tend to be appointed as independent directors rather than in a Chief Executive Ofϐicer (CEO) role. The results reveal that female...

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Bibliographic Details
Main Authors: DING, Kuan Yong David, CHEN, Echo Su
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2018
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/6470
https://ink.library.smu.edu.sg/context/lkcsb_research/article/7469/viewcontent/Jabs_4.5.3.pdf
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Institution: Singapore Management University
Language: English
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Summary:This study examines investor reaction to the appointment of female directors in New Zealand-listed companies. Using the event study method, we ϐind that female directors tend to be appointed as independent directors rather than in a Chief Executive Ofϐicer (CEO) role. The results reveal that female board appointments are generally negatively associated with stock performance. This study captures both the gender diversity arising in New Zealand companies and the performance of stock price resulting from the reaction of investors to the different positions of female directors. The evidence of a decrease in market performance is shown by the negative cumulative average abnormal returns (CAARs) from the announcements of women appointees to the board.