Does Lesbian and Gay Friendliness Pay Off? A New Look at LGBT Policies and Firm Performance

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openAccess

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Journal Title

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Volume Title

A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2022-03

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Mcode

Degree programme

Language

en

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Series

ACCOUNTING AND FINANCE

Abstract

This paper examines the association between LGBT‐friendly corporate policies and firm performance. Using data on US firms from 2003 to 2016, we document that LGBT friendliness is positively associated with firm performance. Specifically, we find strong evidence that more LGBT‐friendly firms have higher profitability and higher stock market valuations. Our results further demonstrate that the positive effect of progressive LGBT policies on firm performance is more pronounced for firms located in more liberal states. Overall, our empirical findings provide support for the view that socially progressive corporate policies and diversity management may create value for the firm.

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Keywords

LGBT policies, Firm performance, Sexual minorities, Employee policies

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Citation

Fatmy, V, Kihn, J, Sihvonen, J & Vähämaa, S 2022, ' Does Lesbian and Gay Friendliness Pay Off? A New Look at LGBT Policies and Firm Performance ', Accounting and Finance, vol. 62, no. 1, pp. 213-242 . https://doi.org/10.1111/acfi.12787