HR Science Forum
Leadership change and shareholder value: How markets react to the appointments of women
Article first published online: 27 JUL 2011
© 2011 Wiley Periodicals, Inc.
Human Resource Management
Volume 50, Issue 4, pages 501–519, July/August 2011
How to Cite
Cook, A. and Glass, C. (2011), Leadership change and shareholder value: How markets react to the appointments of women. Hum. Resour. Manage., 50: 501–519. doi: 10.1002/hrm.20438
- Issue published online: 27 JUL 2011
- Article first published online: 27 JUL 2011
- women in leadership;
- women's career mobility;
- industry gender composition
This study examines whether the appointment of women into senior leadership positions has a more positive effect on share price than the appointment of men into equivalent positions. Our dependent variable is the degree of change in share price following the announcement of men and women into senior leadership positions. Although market reactions to corporate events represent a complex process, we argue that changes in stock price represent a barometer for how investors assess the decision's potential effect on a corporation's short- and long-term economic viability. We find a significant spike in stock price following the announcement of women into top leadership positions. The size and direction of change in stock price, however, is moderated by the gender composition of the industry. © 2011 Wiley Periodicals, Inc.