You may have heard that billionaire Mark Cuban recently claimed he knows DEI is effective because he can see it reflected in the bottom line. In other words, his companies which implement DEI have better earnings as a result. There’s actually a well known series of studies which claim to have demonstrated this relationship:
Four times in the past nine years, the business consulting firm McKinsey & Company has studied the relationship between corporate earnings and corporate diversity — the racial and ethnic makeup of their executives.
In all four reports, it found a statistically positive link: a more diverse company produces a higher return.
Two professors of accounting, Jeremiah Green of Texas A&M and John Hand of the University of North Carolina, set out to replicate McKinsey’s results. In a paper published last month in Econ Journal Watch, they found that they could not do…
