Abstract: Increasing employee gender-diversity is of topical priority in corporate America. Using a comprehensive measure of management gender-diversity and novel data on federal penalties for labor law violations, we show that greater management gender-diversity is associated with reduced labor law violations. The effect size of gender-diversity exceeds the effect of institutional monitoring on labor-law violations and is more pronounced for managers in labor-related roles. One channel that explains this result is investment in employees – firms with greater management gender-diversity make more employee-related investments. For firms in states with high corruption rates, greater management gender-diversity (partially) offsets the negative effect of corruption.
Presented at the University of Alabama Brown Bag, 2021
Presented at Southern Finance Association (SFA) Annual Meeting, 2023
Scheduled presentation at Strategic Management (STR): Fall 2023 Diversity & Faultline Research Webinar
Presented at the University of Alabama Brown Bag, 2022