Melbourne Accounting Research Seminar - Professor April Klein
Melbourne Accounting Research Seminar
Deans Boardroom, level 12, The Spot
198 Berkeley St, Carlton
Professor April Klein from NYU Stern will present a MARS seminar.
Topic: Investors’ Response to the #MeToo Movement: Does Tone at the Top Matter?
Abstract: This paper provides evidence that the #MeToo movement revised investors’ beliefs about the cost of fostering a culture that excludes women, as reflected by the tone at the top set by the absence of female directors in the board room. In particular, we document an overall negative market reaction tracking the timeline of events associated with the #MeToo movement, beginning with the Harvey Weinstein exposé in October of 2017 in the New York Times. This negative response concentrates in the firms that have traditionally excluded women from their board. In contrast, for companies that embrace female representation, this negative effect is moderated. Overall, investors appear to have revised their beliefs about the risk associated with future revelations of misconduct and also about the value of having women in the board room shaping the culture of the firm.