Seminar Ryan Federo

Ryan Federo (Universitat de les Illes Balears) will present his paper “Does the Visibility of LGBTQ+ Directors Influence Firm Value? The Mediating Role of ESG,” joint with Ruth Aguilera (Northeastern University). 

The invited speaker is interested in a tenure-track job in the department (Area: Management).

Abstract

Board directors who identify as lesbian, gay, bisexual, transsexual, transgender, queer, and other identities (LGBTQ+) are now more visible at the corporate apex, as the attainment of diversity, equity, and inclusion at the upper echelons is a goal for many organizations, researchers, and policymakers worldwide. The visibility of LGBTQ+ directors implies the shift toward truly diverse boards that demonstrate commitment to the provision of equal career opportunities for all types of individuals. However, we still lack knowledge regarding the effect of LGBTQ+ board representation on firm outcomes. Drawing on upper echelons and signaling theories, we examine how LGBTQ+ directors influence the firm value of Fortune 500 companies. Our findings show that the visibility of LGBTQ+ directors is positively associated with the firms’ enterprise values, and this relationship is fully mediated by ESG performance which can be attributed to corporate social performance. We discuss the implications of our findings for strategic corporate governance.