The Relationship Between Diversity and Firm Performance : A Statistical Analysis
Nguyen, Phuong T.
MetadataShow full item record
The American workforce is becoming more diverse than ever, with the expanding representation of minority groups, including women, people of color, millennials, etc. Not only are these groups entering the workforce at such a faster rate, but they are also starting to hold higher leadership positions in firms, such as managers, board of directors, and executives. The unsettled debates about whether diversity is beneficial or disadvantageous for business outcomes serve as the motivation for this paper, which aims at finding evidence for a quantitative relationship between diversity and performance. Statistical analysis of American firms data provides an overview of the level of diversity across industries, regions, and corporate structures. Additionally, multiple regression models suggest that the representation of millennials in the workplace has a negative association with firm performance, while representation of other minority groups and performance do not seem to be significantly related.