Is Firm Value Affected by Being Recognized as a Top 50 Company in Diversity, Equity, and Inclusion?

This study evaluates the relationship between being recognized as a leading company in diversity, equity, and inclusion (DEI) as evidenced by being named in the annual DiversityInc Top 50 Companies for Diversity list and firm value. An event study finds investors react to the announcement of the Top 50 Companies for Diversity list as a positive market signal, leading to statistically significant positive abnormal returns on the announcement date. The study replicates and then extends the previous Filbeck et al. (2017) study by almost doubling the years included in the study from 2002-2014 (13 years) to 2001-2024 (24 years). It also expands the long-term effect studies by Filbeck et al. (2017) and Foster et al. (2021) of being recognized as a DiversityInc Top 50 Company for Diversity. The results of the Fama-French 3, 4, and 5 models find a negative long-term effect on firm value starting almost immediately after the announcement and continuing for at least the five weeks after the announcement of the DiversityInc Top 50 Companies for Diversity list and find no support for the Foster et al. (2021) study results of increased firm value over the long term. Additionally, the study finds the political environment of the United States during the periods of Democratic presidential terms increases firm value and has no effect or a negative effect during Republican presidential terms.

Grantor dc:publisher

Creighton University

Year dc:date.issued

2026

Author dc:creator

• Balderson, Shauna, M

Advisor dc:contributor.advisor

• Wingender, John, R

• DEI
• Diversity
• Event Study
• Firm Value
• Presidential Term
• Replication

Statement dc:rights

• Copyright is retained by the Author. A non-exclusive distribution right is granted to Creighton University and to ProQuest following the publishing model selected above.

Language dc:language.iso

en_US

Repository record dc:identifier.uri

https://cdr.creighton.edu/handle/10504/165645

OAI identifier oai:identifier

oai:cdr.creighton.edu:10504/165645