| Article ID: | iaor20132400 |
| Volume: | 59 |
| Issue: | 3 |
| Start Page Number: | 529 |
| End Page Number: | 544 |
| Publication Date: | Mar 2013 |
| Journal: | Management Science |
| Authors: | Nagar Venky, Li Feng |
| Keywords: | operations management, gender, mutual funds |
This study measures the performance of U.S. firms initiating same‐sex domestic partnership benefit (SSDPB) policies. The results show that holding these firms upon their SSDPB initiation in a calendar portfolio earns a four‐factor annualized excess return (alpha) of approximately 10% over the 1995–2008 sample period, beating 95% of all professional mutual funds in the United States. This finding is robust to several tests of reverse causality. SSDPB adopters also show significant improvement in operating performance relative to nonadopters.