Key additional findings included:

Higher representation of Black, Indigenous, and people of color (BIPOC) employees in management has a positive relationship to a range of financial indicators, including higher cash flow, net profit, three- and five-year revenue, five-year return on equity (ROE), and stock performance.
Positive financial performance is associated with smaller gaps between overall diversity and the diversity of the management team.
Five-year ROE has a slight negative association across all sectors when representation of white managers increases.
Negative financial performance is associated with larger gaps between BIPOC representation in the broader employee base and BIPOC representation in the management team.
The gap between overall female representation in the workforce and female representation in management has a negative performance association for the financial sector. The larger the gap between overall representation and women in management, the larger the underperformance.
Much diversity is lost between broader organizational representation and the management level, indicating that overarching challenges exist in the cultivation, retention, and promotion of diverse talent regardless of sector.

Another significant finding: stock brokers tend to overvalue companies with mostly white management teams. "Brokers are more likely to assess future expected performance positively for those companies with high percentages of white managers, although the past performance data of these companies does not support these optimistic expectations," the report says.

Instant Insights /

Data analysis supports connection between greater diversity and better financial results

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