Share buybacks and gender diversity

B-Tier
Journal: Journal of Corporate Finance
Year: 2017
Volume: 45
Issue: C
Pages: 669-686

Authors (2)

Evgeniou, Theodoros (not in RePEc) Vermaelen, Theo (INSEAD)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We find that board gender diversity increases the likelihood that firms announce a buyback but long-term excess returns are significantly smaller when there is larger female representation on the board. This is consistent with the governance hypothesis: gender diversity makes it more likely that firms buy back stock to reduce agency costs of free cash flow. But because gender diversity improves the quality of public information disclosure repurchases are less driven by market timing. Moreover, when the quality of monitoring is lower because board members sit on many other boards, long-term excess returns are larger.

Technical Details

RePEc Handle
repec:eee:corfin:v:45:y:2017:i:c:p:669-686
Journal Field
Finance
Author Count
2
Added to Database
2026-01-29