Work

Employee demographic diversity and firm performance

Year: 2024

Type: article

Abstract: This article examines the relationship between employee demographic diversity and firm performance measured by future stock returns for a large sample of US public companies. We use novel demographic data extracted from employees' online profiles and resumes and focus on three key aspects of employee demographic diversity: age, gender, and ethnicity. We find no evidence supportive of an outperformance associated with greater employee‐diverse companies, neither using portfolio‐sorting approaches nor cross‐sectional and panel regressions. We also find no significant associations between employee demographic diversity and ROE, gross profit, and labor productivity.

Source: Financial Management

DOI: 10.1111/fima.12484

Authors: Bart Frijns, Alexandre Garel, Shushu Liao

Institutions: Open University of the Netherlands, Audencia Business School, Kühne Logistics University

Language: English

Topic: Gender Diversity and Inequality

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: bronze

OpenAlex ID: W4403844279

FWCI: 11.1

Cites: 76

Cited by: 16

Related to: 10