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

Author

Listed:
  • Lins, Karl V.
  • Roth, Lukas
  • Servaes, Henri
  • Tamayo, Ane

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.

Suggested Citation

  • Lins, Karl V. & Roth, Lukas & Servaes, Henri & Tamayo, Ane, 2024. "Sexism, culture, and firm value: evidence from the Harvey Weinstein scandal and the #MeToo movement," LSE Research Online Documents on Economics 122737, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:122737
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    File URL: http://eprints.lse.ac.uk/122737/
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    More about this item

    Keywords

    culture; sexism; gender equality; #MeToo; valuation; returns; investor preferences; institutional ownership; ESG;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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