This paper examines the relationship between board diversity and firm performance. Using 14 years of panel data on U.S. firms, we show that increasing gender diversity has no impact on objective measures of firm performance, but does result in a systematic decrease in the firm’s market value. We explain this finding by suggesting that the decision to appoint female directors will alter the market’s perception of the appointing firm. In a second panel study, we show that firms perceived to be committed to diversity similarly suffer a decrease in firm value. Finally, we show through an experiment that female board appointments are taken as a signal that the firm is motivated by social performance goals, to the detriment of pure profit maximization.In the forthcoming SJWS ALWAYS LIE, I explain this as the inevitable Impossibility of Social Justice Convergence. Which means, to put it simply, is that any organization which is invaded by SJWs and directed towards social justice goals loses its ability to perform its primary function as a direct consequence of its new SJW-imposed priorities.
Sunday, August 23, 2015
Diversity harms share values
It's no wonder feminists and SJWs hate science. All it does is deliver bad news: