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Why Stock Price Drops When Women Join the Board

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This is depressing. Researchers from Harvard are examining why share price tends to be unchanged or slightly lower after a company appoints women to its board. It's looking like good old-fashioned bias is to blame. "The blockholders, he conjectures, assume that their buying-and-selling actions are likely to be noticed by the public and the financial press, so they quash any bias they may feel toward female directors. The non-blockholders assume no such thing and are less likely to "censor their own inclinations to sell in response to growing board diversity," according to a working paper by Dobbin, Jiwook Jung of Harvard, and Alexandra Kalev of the University of Arizona. In the absence of public scrutiny, these institutional investors' "natural biases" are apparently unleashed."