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Gender Diversity: From Wall Street to Main Street

Author

Listed:
  • Yongqiang Chu

    (University of North Carolina at Charlotte)

  • Xinming Li

    (Nankai University)

  • Daxuan Zhao

    (Renmin University of China)

Abstract

Examining the effect of hedge fund activism on gender diversity, we find that the number of female directors decreases after a firm is targeted by hedge fund activism. Using the employment history data from BoardEx, we find that activist hedge funds are more likely to appoint people with finance backgrounds to the boards of target firms. And the newly appointed finance background directors are almost all male because of the lack of diversity in the finance industry. The lack of gender diversity of the hedge funds’ networks and the lack of qualified female directors in the local area also help explain the impact of hedge fund activism on gender diversity on the board.

Suggested Citation

  • Yongqiang Chu & Xinming Li & Daxuan Zhao, 2023. "Gender Diversity: From Wall Street to Main Street," Journal of Business Ethics, Springer, vol. 188(1), pages 151-168, November.
    • Handle: RePEc:kap:jbuset:v:188:y:2023:i:1:d:10.1007_s10551-023-05328-w
    DOI: 10.1007/s10551-023-05328-w
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