Shareholder Returns for a Catalyst Award

Abstract

Using an event study methodology, the authors examine firm share price reactions to the designation of a Catalyst Award. They find a positive relationship between the human resource award and share price reactions. In addition, they find varying degrees of support that timing, firm size, and labor force composition moderate share price reactions. Specifically, the authors find that earlier award announcements generate larger share price reactions than more recent award announcements. They also find support that larger firms reap greater share price reactions than do smaller firms. And last, they find limited support that the proportion of women in an industry moderates the award and share price relationship.