Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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How Does The Capital Market Respond To Diversity Management? Lessons From The U.S. Firms' Valuation With Respect To Their LGBT Policies

자본시장은 기업의 다양성 성과에 어떻게 반응하는가? 미국 기업 의 소수 성정체성 옹호 정책에 대한 자본시장의 기업가치 평가 간의 관계를 중심으로

  • Hannah Oh (Department of Business Administration, Kyungpook National University) ;
  • Sang-Joon Kim (Ewha School of Business, Ewha Womans University)
  • 오한나 (경북대학교 경영학부) ;
  • 김상준 (이화여자대학교 경영학과)
  • Received : 2023.02.28
  • Accepted : 2023.03.25
  • Published : 2023.03.31
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Abstract

Purpose - This study starts with the question of whether the capital market is likely to give positive valuations to companies that pursue diversity in their management and corporate governance structure. In this study, minority gender identity is considered as a diversity issue in management that has a socially negative perception. Design/methodology/approach - This study analyzed the relationship between corporate value in the capital market and the policies of companies that advocated minority gender identities, based on listed U.S. company data. Findings - This study finds that companies that support minority gender identities had a lower Tobin's q value than companies that did not. However, in the case of authenticity in terms of corporate governance diversity, the study finds that companies that advocate minority gender identities rather receive high firm valuation. In particular, companies with a high percentage of female directors show high corporate value even when implementing policies that support minority gender identities. Research implications or Originality - This study explores the capital market's response to diversity using past data in the U.S., but provides more practical implications for how companies should respond to a situation where an advocacy policy, based on more social recognition, for LGBT groups is established in Korea.

Keywords

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