A new paper published today in @EconJWatch finds these results can’t be replicated.
”Our inability to [replicate] their results suggests that … they should not be relied on to support the view that US publicly traded firms can expect to deliver improved financial performance if they increase the racial/ethnic diversity of their executives.”
McKinsey’s bizarre regressions of executive diversity against firm-level financial performance are not only potentially reverse-causal, they don’t replicate in newer data.