More than just good ethics: new research links corporate diversity to better investment decisions

By Adam G. Arian, Lecturer Accounting & Finance, Australian Catholic University
John Sands, Professor of Accounting, School of Business, University of Southern Queensland

When we talk about diversity in business, it’s usually in moral or social terms – fairness, inclusion and representation. But our new research suggests diversity also pays off in a very practical way: helping companies make better financial and investment decisions.

Company boards often get the attention in discussions about corporate leadership. Yet much of the real decision-making happens within smaller, specialised board committees – groups of directors responsible for areas such as audit, risk, remuneration and sustainability.…

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