A Gender Quota for Top Executives: Effects on Diversity and Performance | Research Seminar with Amalia Miller

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Meeting ID: 812 6819 3785

Abstract: In August 2021, Germany adopted a law requiring major public companies to have at least one female top executive. We examine the initial effects of this landmark quota. The quota significantly increased female presence among top executives, with firms drawing new women primarily from outside of their leadership ranks and professional networks. New female executives were mainly recruited into HR and less common board roles; there were no significant increases in female CEOs, CFOs, or COOs. Analysis of daily stock market returns shows a significant negative response to initial calls for a quota on top executives that reversed after the scope of the quota was established and codified into law. Despite the induced changes in leadership, we find no discernable effects of the quota on firms’ operating profit or market valuation after its adoption.

Bio: Professor Miller holds a Ph.D. in Economics from Stanford University and an S.B. in Economics from MIT with a minor in Women's Studies. Her research interests include: Economics of Gender, Health Economics, Labor Economics, and Law and Economics.

Our CIRHR Research Seminar series invites industry leaders and researchers to present their findings. Future guest speakers include:

• November 6, Chunyun Li, LSE Department of Management