[Research Seminar] Market Reactions to Sexual Minority Appointments in Corporate Leadership
October 30th, 2025
2pm – 3:30pm in Village Building (E033) & on Zoom
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Speaker: Wouter TORSIN – HEC Liège
abstract
This paper investigates the market reaction to LGBTQ+ leadership appointments. Building on signaling theory, we hypothesize that LGBTQ+ leadership is perceived positively by investors. Our empirical results demonstrate positive abnormal returns around top management team appointments, with no statistical difference for LGBTQ+ director appointments relative to their non-LGBTQ+ counterpart.
This reaction is stronger when the executives’ sexual orientation is observable. We further demonstrate that this premium occurs for both inside and outside appointments, and that the market reaction is completely driven by male-identifying executives. We formally investigate the channels behind this market premium and document that market reactions are particularly pronounced when employee and consumer attraction gains are higher.