Date of Award
Master of Science (MS)
Economics and Finance
Sepideh Raei (Committee Chair), Katarzyna A. Bilicka (Committee Co-Chair)
Katarzyna A. Bilicka
We analyze the stock market reaction and returns for California-headquartered companies following the announcement of AB 979 (California Assembly Bill 979) that was signed into effect on September 30th, 2020. AB 979 requires public firms headquartered in California to meet board gender and diversity quotas by December 31st, 2021. Cumulative abnormal returns in a [-1, +1] event window average a 0.98% abnormal return as benchmarked against all publicly traded firms and a 1.29% abnormal return when benchmarked against our control group (of firms headquartered outside of California). California headquartered firms with exclusively male boards had a larger cumulative abnormal return when compared to the firms with more diverse boards, but the difference was not statistically significant. Our results suggest that markets perceive publicly held corporations to benefit from board diversification regardless of their current board composition.
Blake, Emily Kelleen; Raei, Sepideh; Bilicka, Katarzyna A.; and Griffith, Todd, "Do Board Diversity and Gender Quotas Affect Firm Value? Evidence from California Assembly Bill No. 979" (2022). All Graduate Plan B and other Reports. 1627.
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