Value creation through executive diversity

Abstract

We examined stock market reactions to announcements of CEO appointments as a proxy for the perceived value created by these appointments. We examined differences in market reactions to the appointments of minority and women CEOs compared to white males. Our results indicate additional value creation through the appointment of African- American CEOs, but not through the appointment of female or Hispanic CEOs. We provide a potential explanation for this differential valuation of differing types of diversity.

Citation

Haggard, D.L. and Haggard, K.S. (2017), "Value creation through executive diversity", International Journal of Organization Theory & Behavior, Vol. 20 No. 2, pp. 141-160. https://doi.org/10.1108/IJOTB-20-02-2017-B001