Gender diversity, country norms and capital markets post-COVID-19. (10th November 2022) - Jandik, Dobrina
Gender norms - that is, the prevailing attitudes toward women's right to earn an income, women's access to education, and society's prevailing opinions regarding women's abilities to be effective business or political leaders - substantially differ across countries. In the presence of the exogenous shock from the COVID-19 lockdown and social distancing, countries with a less favourable view of women in the workforce experience lower losses. We also find that the association between gender norms and shares of domestic investment in a country's equity market is further amplified in countries associated with greater levels of mutual trust perceived by their citizens. Our findings underscore the crucial role of the female population in market development around the world.