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Diversity and Performance

Author

Listed:
  • Feng Li

    () (University of Michigan, Ann Arbor, Michigan 48109)

  • Venky Nagar

    () (University of Michigan, Ann Arbor, Michigan 48109)

Abstract

This study measures the performance of U.S. firms initiating same-sex domestic partnership benefit (SSDPB) policies. The results show that holding these firms upon their SSDPB initiation in a calendar portfolio earns a four-factor annualized excess return (alpha) of approximately 10% over the 1995-2008 sample period, beating 95% of all professional mutual funds in the United States. This finding is robust to several tests of reverse causality. SSDPB adopters also show significant improvement in operating performance relative to nonadopters. This paper was accepted by Brad Barber, finance.

Suggested Citation

  • Feng Li & Venky Nagar, 2013. "Diversity and Performance," Management Science, INFORMS, vol. 59(3), pages 529-544, September.
  • Handle: RePEc:inm:ormnsc:v:59:y:2013:i:3:p:529-544
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    File URL: http://dx.doi.org/10.1287/mnsc.1120.1548
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    References listed on IDEAS

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    Cited by:

    1. Katherine B. Coffman & Lucas C. Coffman & Keith M. Marzilli Ericson, 2013. "The Size of the LGBT Population and the Magnitude of Anti-Gay Sentiment are Substantially Underestimated," NBER Working Papers 19508, National Bureau of Economic Research, Inc.
    2. repec:bla:stratm:v:38:y:2017:i:9:p:1812-1826 is not listed on IDEAS

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