Mandating Gender Diversity and the Value Relevance of Sustainable Development Disclosure

This study investigates whether investors react to disclosures of sustainable development. The further examines if the legislative change has affected investors’ perception on sustainability disclosure via corporate governance mechanism. With recent in Korea, gender quota may have negatively impacted due tokenism. In this study, we employ a natural experiment and event with 72 largest Korean firms listed stock market. Findings indicate that female directors experience significant abnormal returns around days, meeting minimal requirement insignificant returns. implies provide better diversity boardroom. However, benefits from become weak when tokenism is applied them. makes several contributions literature by providing additional evidence implications about relationship between development for academia practitioners.