Does forced diversity hurt firm performance?

2/9/2010

New SEC rules will require public firms to disclose what role, if any, diversity plays in appointing members to their corporate boards, but University of Michigan researchers say any forced restructuring of boards in the name of equality could hurt companies. “Boards are chosen in order to increase shareholder wealth,” said Amy Dittmar, associate professor of finance at Michigan’s Ross School of Business. “Placing restrictions on the composition of a board will reduce value.” [Read more...]

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