IDEAS home Printed from https://ideas.repec.org/a/wly/empleg/v22y2025i1p4-26.html
   My bibliography  Save this article

Market Response to Court Rejection of California's Board Diversity Laws

Author

Listed:
  • Jonathan Klick

Abstract

California mandated that firms headquartered in the state include women (SB 826) and underrepresented minorities (AB 979) on their corporate boards. These laws, passed in 2018 and 2020 respectively, were held to violate the state's constitution by judges on the Los Angeles County Superior Court in 2022. This paper examines the market reaction to these surprising court decisions, finding that California firms appreciated significantly on the days of the rulings, and there is evidence that firms that were not in compliance with the laws exhibited larger abnormal returns than firms that were in compliance.

Suggested Citation

  • Jonathan Klick, 2025. "Market Response to Court Rejection of California's Board Diversity Laws," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 22(1), pages 4-26, March.
    • Handle: RePEc:wly:empleg:v:22:y:2025:i:1:p:4-26
    DOI: 10.1111/jels.12405
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jels.12405
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jels.12405?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:empleg:v:22:y:2025:i:1:p:4-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1740-1461 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.