Why does corporate culture matter to investors?

In this episode of The Why Podcast, host Katie Pisa sits down with Henri Servaes, Professor of Finance at London Business School and Richard Brealey Professor of Corporate Governance, to explore how corporate culture is reshaping investment decisions and boardroom dynamics.

Drawing on his recent research Sexism, Culture, and Firm Value: Evidence from the Harvey Weinstein Scandal and the #MeToo Movement, Henri unpacks how the #MeToo movement and the Harvey Weinstein scandal triggered revelations of toxic workplace culture that started a re-evaluation of what “good governance” really means.

The conversation delves into why firms with more inclusive leadership structures saw meaningful gains in investor interest – and how sexism, far from being just a moral issue, now carries material consequences for valuation and reputation.

Listen in and learn more about some of the key findings:

• Firms with women in the top five executive positions earn more than firms without
• Less than 40% of all firms had a woman among the top five executives
• Firms that fail to evolve risk more than reputational damage—they risk losing investor trust
• Companies must have equal performance standards for men and women

From institutional investors shifting portfolios to companies in “boys’ club” industries scrambling to improve diversity, this episode examines the measurable market response to cultural failings, and what that means for the future of leadership, governance, and trust in capital markets.

If you’ve ever wondered whether values influence valuation, this one’s for you.