Gender diversity pays off: A new Stanford study finds equitable hiring boosts companies' stock prices
Associated Press/Wilfredo Lee
- Companies that announce better-than-expected levels of gender diversity see their stocks perform better, according to a new study published by the Stanford Graduate School of Business.
- The boosted share prices follow gender diversity announcements in the tech and finance sectors, two areas known for high levels of gender disparity in staffing.
- Those investing in gender-diverse companies believe equitable hiring brings increased morality, fewer personality conflicts, and more innovation, among other benefits.
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Share prices jump when companies reveal gender diversity levels above investors' expectations, according to a new study published by the Stanford Graduate School of Business.Researchers at Stanford, Northwestern, Dartmouth, and the Hong Kong University of Science and Technology used two field studies and a lab experiment to test correlation between company valuation and gender diversity.Advertisement
Their paper noted that previous studies into the two variables found no evidence of a connection, and that it "remained unknown how, why, and when investors react to gender diversity."
The report was penned by professors David Daniels, Jennifer Dannals, Thomas Lys, and Margaret Neale.Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.
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