Download This Paper(Diversity) Equity and Inclusion
FEB-RN Research Paper No. 07/2024
European Corporate Governance Institute – Finance Working Paper No. 913/2023
Proceedings of the EUROFIDAI-ESSEC Paris December Finance Meeting 2023
HKU Jockey Club Enterprise Sustainability Global Research Institute - Archive
60 Pages Posted: 1 May 2023 Last revised: 14 Dec 2024
There are 2 versions of this paper
(Diversity) Equity and Inclusion
Diversity, Equity, and Inclusion
Date Written: April 17, 2025
Abstract
This paper measures equity and inclusion (EI) using proprietary data on employee perceptions from survey responses used to compile the Best Companies to Work For list. Our EI measure has low correlation with gender and ethnic diversity in the boardroom, in senior management, and within the workforce, cautioning against approaches to diversity, equity, and inclusion that reduce it to diversity only. EI is associated with higher future accounting performance, future earnings surprises, and current valuation ratios, but diversity is not. EI perceptions among professional workers, such as R&D employees, are significantly correlated with the number and quality of patents.
Keywords: Diversity, Equity, Inclusion, ESG, CSR, Responsible Business, DEI
JEL Classification: G12, G32, J53, J71, J81
Suggested Citation: Suggested Citation
European Corporate Governance Institute (ECGI) ( email )
c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium
European Corporate Governance Institute (ECGI) ( email )
c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium
Simon Glossner
Board of Governors of the Federal Reserve System ( email )
20th Street and Constitution Avenue NW
Washington, DC 20551
United States