A Level Playing Field? Empirical Evidence That Ethnic Minority Analysts Face Unequal Access to Corporate Managers

64 Pages Posted: 8 Jun 2020 Last revised: 7 Jan 2022

See all articles by Rachel W. Flam

Rachel W. Flam

London Business School

Jeremiah Green

Texas A&M University - Department of Accounting

Joshua A. Lee

Brigham Young University

Nathan Y. Sharp

Texas A&M University - Department of Accounting

Date Written: January 2022

Abstract

We investigate whether ethnic minority analysts face unequal access to management on public earnings conference calls. We find minority analysts are underrepresented in the Q&A sessions of public earnings conference calls, and minority analysts who do participate receive lower levels of prioritization and engagement than nonminority analysts. Disparities in minority analysts’ participation are reduced in companies facing greater public scrutiny and heightened in companies found to have engaged in discriminatory employment practices. The disparities we document do not appear to be related to analysts’ innate personality characteristics. However, we find some evidence that diverse executive teams are associated with more favorable participation outcomes for minority analysts. The consequences of unequal access extend beyond conference calls, as investors are less likely to vote for minority analysts as Institutional Investor All-Stars.

Keywords: ethnic discrimination, ethnic bias, ethnic diversity, financial analysts, management access, earnings conference calls, All-Star analysts, institutional investors

JEL Classification: J15, J71, D22, G02, G20, G23, G24, G28, M40

Suggested Citation

Flam, Rachel and Green, Jeremiah and Lee, Joshua A. and Sharp, Nathan Y., A Level Playing Field? Empirical Evidence That Ethnic Minority Analysts Face Unequal Access to Corporate Managers (January 2022). Available at SSRN: https://ssrn.com/abstract=3622417 or http://dx.doi.org/10.2139/ssrn.3622417

Rachel Flam

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Jeremiah Green

Texas A&M University - Department of Accounting ( email )

430 Wehner
College Station, TX 77843-4353
United States

Joshua A. Lee

Brigham Young University ( email )

United States
801-422-3154 (Phone)

HOME PAGE: http://https://marriottschool.byu.edu/directory/details?id=37414

Nathan Y. Sharp (Contact Author)

Texas A&M University - Department of Accounting ( email )

4353 TAMU
College Station, TX 77843-4353
United States
979-845-0338 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
496
Abstract Views
3,285
rank
79,896
PlumX Metrics