CHICAGO (WBBM NEWSRADIO) — There are a record number of women leading Fortune 500 companies this year but a new study finds more attention to their appointments fuels a dip in their company’s stock price.
Significant media attention to the announcement of a woman being named CEO leads to a drop in stock prices for that company of 2 to 3% before eventually reversing according to a new study from Northwestern University's Kellogg School of Management.
Researchers believe, after reviewing 16 years of stories about CEO appointments for U.S. publicly traded firms, that investors make what they consider second-ordered sense-making and assume other traders will not like the news.
Companies with announcements that got little attention see stock prices gain researchers found.
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