Gender diversity pays off: A new Stanford study finds equitable hiring boosts companies' stock prices
- 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.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.