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Employee demographic diversity and firm performance

Author

Listed:
  • A. Garel

    (Audencia Business School)

  • B. Bart Frijns
  • S. Shushu Liao

Abstract

This article examines the relationship between employee demographic diversity and firm performance measured by future stock returns for a large sample of US public companies. We use novel demographic data extracted from employees' online profiles and resumes and focus on three key aspects of employee demographic diversity: age, gender, and ethnicity. We find no evidence supportive of an outperformance associated with greater employee-diverse companies, neither using portfolio-sorting approaches nor cross-sectional and panel regressions. We also find no significant associations between employee demographic diversity and ROE, gross profit, and labor productivity.

Suggested Citation

  • A. Garel & B. Bart Frijns & S. Shushu Liao, 2024. "Employee demographic diversity and firm performance," Post-Print hal-04768487, HAL.
    • Handle: RePEc:hal:journl:hal-04768487
    DOI: 10.1111/fima.12484
    as

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