The Why Podcast: 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—particularly around gender equality and inclusion—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. 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. For more thought leadership and business insights from London Business School faculty and alumni, visit  ⁠Think at London Business School⁠  Sign up ⁠here⁠ to receive a curated selection of articles, podcasts and films direct to your inbox twice a month.  Follow us on social media:  ⁠X⁠  ⁠Linkedin⁠  ⁠Facebook⁠