How Does the Visibility of LGBTQ+ Directors Influence Firm Value? The Mediating Role of Environmental, Social, and Governance Performance
A recent paper published in Human Resource Management (HRM) examined how the visibility of board directors who identify as lesbian, gay, bisexual, transgender, queer, and other identities (LGBTQ+) influences their firm value. Using the OLS regressions on an unbalanced panel dataset of 441 Fortune 500 companies, the study revealed that the visibility of LGBTQ+ directors is positively associated with firm value. The study also found that this relationship is mediated by environmental, social, and governance (ESG) performance of the organisation, which can be, in turn, attributed to the organisation's social performance. The study integrates upper echelons and signalling theories to explain board diversity, thus complementing a large body of literature that primarily draws on resource-based justifications regarding board composition with a stream of research that offers a signalling rationale for board composition. The study contributes to our better understanding of the relationship between LGBTQ+ board representation and firm outcomes, and shifts the scholarly attention from understanding LGBTQ+ individuals' workplace experience as employees and lower-level managers toward their appointment, role, and visibility at the upper echelons.
To find out more:
- Read the full article here.
- Read the press release here.
- Watch the interview with the authors here. ------------------------------
Shaun Pichler, Ph.D.
Co-Editor-in-Chief, HRM
Professor
Department of Management
California State University, Fullerton
https://business.fullerton.edu/faculty/shaun-pichler/assets/docs/shaunpichlercv.pdf------------------------------