Does diversity improve profits and shareholder returns? Evidence from top rated companies for diversity by DiversityInc
Greg Filbeck,
Benjamin Foster,
Dianna Preece and
Xin Zhao
Advances in accounting, 2017, vol. 37, issue C, 94-102
Abstract:
In this study, we examine the relationship between the diversity efforts of firms listed in DiversityInc's list of Top 50 Companies for Diversity and their financial performance. We examine both an announcement effect and the risk-adjusted performance of diverse firms to a matched sample and the S&P 500 index. We find a positive effect related to the announcement of the DiversityInc Top Companies for Diversity list. When examining long-term performance using the risk-adjusted performance of listed companies, DiversityInc firms outperform the S&P 500 index but have performance that is either indistinguishable or inferior to a matched sample. DiversityInc firms exhibit superior return on assets compared to the matched sample, but this difference is explained by differences in firm size. Overall, we find limited support that inclusion in DiversityInc's list of top firms for diversity indicates improved performance over a matched sample.
Keywords: Workforce diversity; Shareholder value; Risk-adjusted returns (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S088261101630044X
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:37:y:2017:i:c:p:94-102
DOI: 10.1016/j.adiac.2017.02.001
Access Statistics for this article
Advances in accounting is currently edited by Dennis Caplan
More articles in Advances in accounting from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).