Do Investors Value Firms’ Commitment to Employee Rights: Evidence from Abortion Bans
Prof. Tingting QUE
Associate Professor in Finance
FBA, UM
Date: 18 November 2024 (Monday)
Time: 13:00 to 14:00
Venue: FBA Lobby
Abstract
Exploiting a novel setting of state-by-state abortion ban or restriction events, we document that firms committed to gender diversity and inclusion in their workplace earn superior stock returns when states announce abortion bans or restrictions. However, the market does not react significantly to firms with such commitments when states make abortion protection announcements. Furthermore, the positive market reaction to committed firms in banned states is more pronounced when firms have a high number of subsidiaries in the banned states, low public attention, a low union presence, and a high increase in employee satisfaction. Overall, our analysis highlights that the market appreciates firms that support employees when states adopt policies that likely limit employees’ rights.
Speaker
Tingting Que is an Associate Professor of Finance at the Faculty of Business Administration, University of Macau. Her research interests encompass labor and finance, executive compensation, and mergers and acquisitions. Professor Que’s work has been published in prestigious finance journals such as the Journal of Financial and Quantitative Analysis and the Financial Review, among others.
All are welcome!
