Board Gender Diversity, Corporate Reputation and Market Performance
Keywords:Ethical orientations, Corporate reputation, Market performance, Gender diversity
AbstractThis study examines the association between corporate transparency, ethical orientation of Fortune 500 companies, the number of females represented on the board of directors as reported in the 2010 annual report data and respective stock performance. Our basis for this judgement was whether the firm was listed on either (both) Ethisphere Magazineâ€™s 2010 â€˜Worldâ€™s Most Ethical Companiesâ€™ or (and) Corporate Responsibility Magazineâ€™s 2010 â€˜100 Best Corporate Citizens Listâ€™. Our results indicate that, as the number of women directors increased, the probability of a corporation appearing in these lists increases. Finally, while being on one of these lists did not increase corporate return data in a statistically significant sense, it did dramatically reduce the degree of negative returns.