Sexism, Culture, and Firm Value: Evidence from the Harvey Weinstein Scandal and the #MeToo Movement
48 Pages Posted: 2 Oct 2019 Last revised: 10 Dec 2020
Date Written: December 1, 2020
During the Harvey Weinstein and #MeToo events, firms with a non-sexist corporate culture, proxied by having women among the five highest paid executives, earn excess returns of 1.6%. These returns are followed by positive revisions in analyst earnings forecasts. Returns for female-led firms increase to 3.2% in industries with few women executives, and 2.1% and 2.7% if headquartered in states with a high level of sexism or gender pay gap, respectively. Firms in industries with more women executives or headquartered in less sexist states also earn positive abnormal returns. Our evidence attests to the value of having a non-sexist culture.
Keywords: Sexism, culture, female leadership, firm value
JEL Classification: M14, G32, G34
Suggested Citation: Suggested Citation