1% more gender diversity could boost the valuation of major tech firms by $152 million.
Investors seem to bet on diverse firms due to their perceived creativity, ethicality, and reduced legal risks.diversity, do investors care? Surprisingly, the answer is yes, according to our new research paper published inIn our first study, I conducted an empirical analysis of stock price reactions to firms’ diversity reports. We found that when a firm’s first diversity report revealed relativelyWe examined major U.S. technology firms, such as Google and eBay, as well as major U.S.
All this points toward a new kind of business case for diversity, driven by investors: major firms with more workforce gender diversity are likely to be “rewarded” with substantially higher stock market valuations.investors value workforce gender diversity, my coauthors and I turned to randomized laboratory experiments.