Diversity Washing

• 成果类型: Article
• 署名作者: Baker, Andrew C.; Larcker, David F.; McClure, Charles G.; Saraph, Durgesh; Watts, Edward M.
• 署名单位: Stanford University; European Corporate Governance Institute; University of Chicago; Yale University
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12542
• 发表日期: 2024
• 页码: 1661-1709
• 关键词: ANNUAL-REPORT READABILITY; SOCIAL-RESPONSIBILITY; earnings quality; Textual analysis; disclosure; tone; cost

摘要

We provide large-sample evidence on whether U.S. publicly traded corporations use voluntary disclosures about their commitments to employee diversity opportunistically. We document significant discrepancies between companies' external stances on diversity, equity, and inclusion (DEI) and their hiring practices. Firms that discuss DEI excessively relative to their actual employee gender and racial diversity (diversity washers) obtain superior scores from environmental, social, and governance (ESG) rating organizations and attract more investment from institutional investors with an ESG focus. These outcomes occur even though diversity-washing firms are more likely to incur discrimination violations and have negative human-capital-related news events. Our study provides evidence consistent with growing allegations of misleading statements from firms about their DEI initiatives and highlights the potential consequences of selective ESG disclosures.