Research on whether board gender diversity enhances firm value has yielded inconsistent findings. To reconcile the mixed findings, we propose that the valuation of female directors by investors in the United States is shaped by the presidential administration. Specifically, we theorize that under Democratic presidencies, where gender equality receives more political emphasis, female board representation increasingly enhances firm value over the president’s tenure. In contrast, this relationship becomes increasingly negative under Republican presidencies. Based on data from 9,203 public companies from 1989 to 2021 spanning five presidencies, fixed-effect regression results support our predictions. Additional analyses show that these patterns are not driven by changes in ROA and are strengthened when presidents have a more positive public approach to gender diversity. These nuanced findings highlight how the sociopolitical climate, influenced by U.S. presidents’ agendas and actions, can shape market assessments of corporate governance.
