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

• Main Authors: DING, Kuan Yong David, CHEN, Echo Su
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Stock returns; Women directors; New Zealand; Business and Corporate Communications; Organizational Behavior and Theory
• 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
• Institution: Singapore Management University

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.