Choices in CDO appointment and firm performance: Moving towards a Stakeholder-based approach

Nikhil Mehta, Anju Mehta, Yusuf Hassan, Holly Buttner and Sanchita RoyChowdhury

Journal of Business Research, 2021, vol. 134, issue C, 233-251

Abstract: The choices associated with a chief diversity officer (CDO) appointment can significantly impact firm performance. However, research examining this link is scarce. To bridge this gap, we draw uponstakeholder,upper echelons,and institutional theoriesto examine howchoices related to CDO appointments, namely, gender, type of hire, and type of position, impact firm performance. Using data from Fortune 1000 and S&P 500 U.S. firms on 101 CDO appointments,we investigate howCDO appointment choicesinfluence firm performance. Our results indicate that appointment of a female CDO is not associated with a significantly better firm performance than hiring a male CDO. However, consistent with our hypotheses, we found evidence that both - the type of CDO position and the type of hire are important to firm performance. Notably, a firm's performance gains are substantially increased when the firm hires a CDO externally to fill a newly created CDO position.

Keywords: Diversity management; Stakeholder theory; Upper echelons theory; Chief diversity officer appointment; Social inclusion; Firm performance (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:134:y:2021:i:c:p:233-251

DOI: 10.1016/j.jbusres.2021.05.016

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