The Market Impact of the Appointment of Female Directors in Listed Companies in New Zealand

This study examines investor reaction to the appointment of female directors in New Zealand-listed companies. Using the event study method, we find that female directors tend to be appointed as independent directors rather than in a CEO role. The results reveal that female board appointments are generally negatively associated with stock performance. This study captures both the gender diversity arising in New Zealand companies and the performance of stock price resulting from the reaction of investors to the different positions of female directors. The evidence of a decrease in market performance is shown by the negative cumulative average abnormal returns from the announcements of women appointees to the board