The Challenges of Diversity Investing

Research Affiliates
By December 20, 2018 12:05

The Challenges of Diversity Investing

  • Both academic research and our own experience indicate that the business case for corporate diversity is compelling as a result of higher collective intelligence.
  • Testing the investment case for greater diversity faces two major challenges: insufficient historical data and difficulty in measuring whether the culture is one that embraces dissenting views among the team.
  • Accordingly, we conclude that investors who seek to promote diversity and its business benefits would be well served to combine diversity with known drivers of excess returns.

Research Affiliates
By December 20, 2018 12:05

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