Investor Valuation: LGBTQ Inclusion and the Effect on a Firm's Financials
PublisherThe University of Arizona.
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AbstractThis study examines whether institutional investors value LGBTQ workplace initiatives differently than common investors. To investigate this issue, I analyze the stock market reaction to the release of the 2012 Corporate Equality Index (CEI) scores from the Human Rights Campaign to identify the difference for firms depending on the level of institutional ownership. My findings suggest that firms with a higher ownership percentage of institutional investors have a significantly positive increase in stock prices when they release high CEI scores. This suggests that institutional investors see value in corporate LGBTQ policies.
Degree ProgramHonors College