This study investigates the effects of gender quota on European real estate investment trust (REIT) performance during the period from 2008 to 2022.
This article employs an event study framework to examine changes in REIT performance before and after the implementation of gender quota regulations in Belgium, France, Italy, Greece, the Netherlands and the United Kingdom (UK), using a fixed-effects estimator. The event study design helps mitigate potential sample selection bias associated with quota adoption effects. To further strengthen the causal interpretation of the relationship between gender quota and firm performance, we conducted two heterogeneity analyses. First, we compare firm performance during the transition and post-transition periods. Second, we examine firm-level variation in the speed of quota compliance across individual REITs. Together, these tests capture the presence of short-term adjustment costs arising from the implementation of gender quota regulations.
This study finds a significant negative impact of gender quota on the performance of European REITs. In contrast to prior studies, we find that both mandatory and voluntary regimes exert an equally negative effect on firm performance. Heterogeneity analyses indicate that the adverse impact is primarily driven by short-term adjustment costs associated with the implementation of gender quota regulations. Specifically, the negative effects are concentrated during the transition period when disruption is at its peak and are most pronounced for REITs that experience greater difficulty complying with the quota requirements.
Governments should recognise the short-term adjustment costs faced by REITs during the transition period. Countries introducing new gender quota rules should provide firms with a sufficient transition period, accompanied by ongoing support and monitoring to help mitigate REITs' short-term performance losses.
To the best of the authors' knowledge, this is the first study to examine the relationship between gender quota and firm performance in the European REIT sector. We contribute to the literature by considering both the implementation period of the quota (transition vs post-transition) and individual REITs' speed of compliance with the regulation.
