Does the manager’s gender influence shareholders' market valuation of the firm

Abstract

We examine whether shareholders' responses to risky investment decisions are influenced by the gender of the firm's manager, particularly when these decisions impact the fundamental value per share. Our findings indicate that while actual investment choices do not differ by gender, shareholders expect male managers to allocate more to risky assets than their female counterparts. However, market prices for shares remain the same under both male and female managers, suggesting that gender diversity in leadership does not negatively affect shareholder valuation.