Sexism, culture, and firm value: evidence from the Harvey Weinstein scandal and the #MeToo movement

Lins, Karl V., Roth, Lukas, Servaes, Henri and Tamayo, Ane ORCID: 0000-0001-7154-0221 (2024) Sexism, culture, and firm value: evidence from the Harvey Weinstein scandal and the #MeToo movement. Journal of Accounting Research. ISSN 0021-8456

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Abstract

During the revelation of the Harvey Weinstein scandal and the reemergence of the #MeToo movement, firms with a nonsexist corporate culture, proxied by having women among the five highest-paid executives, earn excess returns of 1.3% relative to firms without female top executives. These returns are driven by changes in investor preferences toward firms with a nonsexist culture. Institutional ownership increases in firms with a nonsexist culture after the Weinstein/#MeToo events, particularly for investors with larger holdings and investors with a lower ESG focus ex ante. Firms without female top executives improve gender diversity after these events, particularly in more sexist states and in industries with few women executives. Our evidence attests to the value of having a nonsexist corporate culture and indicates that changes in societal norms toward women are permeating into capital markets and corporations.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/1475679x
Additional Information:	© 2024 The Authors
Divisions:	Accounting
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
JEL classification:	J - Labor and Demographic Economics > J1 - Demographic Economics > J16 - Economics of Gender; Non-labor Discrimination G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing; Trading volume; Bond Interest Rates G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General
Date Deposited:	22 Apr 2024 16:03
Last Modified:	18 Nov 2024 23:51
URI:	http://eprints.lse.ac.uk/id/eprint/122737

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