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Investors Predict Tech, Finance Companies With More Gender Diversity Will See Stock Prices Rise: Study

WASHINGTON INFORMER — A study by Stanford University, Northwestern University, Dartmouth College and the Hong Kong University of Science and Technology found investors are more likely to bet that a company will see its stock prices rise if it reported “higher-than-average” gender diversity among its staff.

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By Olivia Riggio, Special to The Informer via DiversityInc

study by Stanford University, Northwestern University, Dartmouth College and the Hong Kong University of Science and Technology found investors are more likely to bet that a company will see its stock prices rise if it reported “higher-than-average” gender diversity among its staff.

The study’s authors, David P. Daniels, Jennifer E. Dannals, Thomas Z. Lys and Margaret A. Neale, found a positive correlation between press announcements of companies’ gender diversity achievements and a rise in stock prices for those companies. They looked at investor reactions to approximately 60 gender diversity announcements for companies in the tech and financial sectors between 2014 and 2018.

The study also included qualitative research through a survey of participants. All who participated in the test reported they had some kind of managerial experience.

Responses to the survey suggest investors see value in gender diversity, linking it to innovation and creativity, and that investors prefer more diverse companies because they agree with gender diversity on a personal or political level.

Large companies like Google and Facebook are notorious for having dismal numbers regarding workforce diversity. In 2014, Google’s workforce diversity report showed only 30% of employees were women, 3% were Hispanic and 2% were Black. Now, in 2019, Google has hardly improved. Women make up about 33% of their employee base, according to its annual diversity report. Just under 37% of Facebook’s employees are women, according to the company’s 2019 Diversity Report.

Neale, an organizational behavior professor at Stanford Graduate School of Business, and two of her doctoral students began the study to find whether investors cared about companies’ gender diversity. According to Business Insider, Neale and her team highlighted Google’s 2014 diversity report, which showed 70% of the company’s employees were men.  The company’s stock fell .39% the day the announcement was made. They then projected that if Google had just one percentage point more of female workers, it could have been worth about $375 million more.

The researchers found that the correlation between share price and diversity levels was even higher among other tech companies than what they observed from Google, which they used as a benchmark. When tech companies announced better-than-expected gender diversity, investors invested in them at higher rates.

In the financial sector, the researchers found a similar correlation. They found when an article came out announcing a company was delivering on diversity, stock prices for that company rose that same day.

For the next part of the study, researchers conducted an experiment. They gave a sample of people with managerial experience $1 to bet on whether a company’s value would rise or fall depending on its gender diversity announcements. They would place their bets and then link their decision to certain “belief items,” including morality, creativity, conflict of ideas and risk aversion.

The subjects were more likely to bet their dollar on the stock price rising following an announcement reporting good gender diversity. They also reported believing that      more diverse companies were more likely to think creatively and act ethically and less likely to have personality conflicts and negative political attention. They also felt these companies were more likely to litigate lawsuits instead of settling.

Additional studies have also pointed to the financial success of companies with more women in the workforce. Though this study focused on women employees of all levels, a 2015 MSCI report found companies that have women on corporate boards achieve more profitability, fewer controversies and better decision-making than those without female leadership.

Of the results of the study, Neale said in Stanford’s report announcing the release of the study that they suggest diversity has more benefits than just helping a company appear more ethical.

“This goes beyond saying diversity is a good idea because it’s ethical,” she said. “Shareholders are saying, ‘If you’re not as diverse as we want you to be, there are going to be economic consequences.’”

This post originally appeared in The Washington Informer.

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IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78

NNPA NEWSWIRE — Born on September 4, 1945, in Los Angeles, California, activist Ramona Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.
The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

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By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Once upon a time, Black Americans were simply known as colored people, or Negroes. That is until Ramona Edelin came along. The activist, renowned for her pivotal roles in advancing civil rights, education reform, and community empowerment, died at her D.C. residence last month at the age of 78. Her death, finally confirmed this week by Barnaby Towns, a communications strategist who collaborated with Dr. Edelin, was attributed to cancer.

Born on September 4, 1945, in Los Angeles, California, Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.

Edelin’s contributions to academia and activism were manifold. She was pivotal in popularizing the term “African American” alongside Rev. Jesse L. Jackson in the late 1980s.

Jackson had announced the preference for “African American,” speaking for summit organizers that included Dr. Edelin. “Just as we were called Colored, but were not that, and then Negro, but not that, to be called Black is just as baseless,” he said, adding that “African American” “has cultural integrity” and “puts us in our proper historical context.”

Later, Edelin told Ebony magazine, “Calling ourselves African Americans is the first step in the cultural offensive,” while linking the name change to a “cultural renaissance” in which Black Americans reconnected with their history and heritage.

“Who are we if we don’t acknowledge our motherland?” she asked later. “When a child in a ghetto calls himself African American, immediately he’s international. You’ve taken him from the ghetto and put him on the globe.”

The HistoryMakers bio noted that Edelin’s academic pursuits led her to found and chair the Department of African American Studies at Northeastern University, where she established herself as a leading voice.

Transitioning from academia to advocacy, Edelin joined the National Urban Coalition in 1977, eventually ascending to president and CEO. During her tenure, she spearheaded initiatives such as the “Say Yes to a Youngster’s Future” program, which provided crucial support in math, science, and technology to youth and teachers of color in urban areas. Her biography noted that Edelin’s efforts extended nationwide through partnerships with organizations like the National Science Foundation and the United States Department of Education.

President Bill Clinton recognized Edelin’s expertise by appointing her to the Presidential Board on Historically Black Colleges and Universities in 1998. She also co-founded and served as treasurer of the Black Leadership Forum, solidifying her standing as a respected leader in African American communities.

Beyond her professional achievements, Edelin dedicated herself to numerous boards and committees, including chairing the District of Columbia Educational Goals 2000 Panel and contributing to the Federal Advisory Committee for the Black Community Crusade for Children.

Throughout her life, Edelin received widespread recognition for her contributions. Ebony magazine honored her as one of the 100 Most Influential Black Americans, and she received prestigious awards such as the Southern Christian Leadership Award for Progressive Leadership and the IBM Community Executive Program Award.

The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

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Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues

NNPA NEWSWIRE — Recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.
The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

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By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Tennessee State University (TSU), the state’s only public historically Black college and university (HBCU), faces a tumultuous future as Gov. Bill Lee dissolved its board, a move supported by racist conservatives and MAGA Republicans in the Tennessee General Assembly, who follow the lead of the twice-impeached, four-times indicted, alleged sexual predator former President Donald Trump. Educators and others have denounced the move as an attack on diversity, equity, and inclusion (DE&I) and a grave setback for higher education.

Critics argue that TSU’s purported financial mismanagement is a manufactured crisis rooted in decades of underinvestment by the state government. They’ve noted that it continues a trend by conservatives and the racist MAGA movement to eliminate opportunities for Blacks in education, corporate America, and the public sector.

Gevin Reynolds, a former speechwriter for Vice President Kamala Harris, emphasizes in an op-ed that TSU’s financial difficulties are not the result of university leadership because a recent audit found no evidence of fraud or malfeasance.

Reynolds noted that the disbanding of TSU’s board is not an isolated incident but part of a broader assault on DE&I initiatives nationwide. Ten states, including Tennessee, have enacted laws banning DE&I policies on college campuses, while governors appointing MAGA loyalists to university trustee positions further undermine efforts to promote inclusivity and equality.

Moreover, recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.

The actions echo historical efforts to suppress Black progress, reminiscent of the violent backlash against gains made during the Reconstruction era. President Joe Biden warned during an appearance in New York last month that Trump desires to bring the nation back to the 18th and 19th centuries – in other words, to see, among other things, African Americans back in the chains of slavery, women subservient to men without any say over their bodies, and all voting rights restricted to white men.

The parallels are stark, with white supremacist ideologies used to justify attacks on Black institutions and disenfranchise marginalized communities, Reynolds argued.

In response to these challenges, advocates stress the urgency of collective action to defend democracy and combat systemic racism. Understanding that attacks on institutions like TSU are symptomatic of broader threats to democratic norms, they call for increased civic engagement and voting at all levels of government.

The actions of people dedicated to upholding the principles of inclusivity, equity, and justice for all will determine the outcome of the ongoing fight for democracy, Reynolds noted. “We are in a war for our democracy, one whose outcome will be determined by every line on every ballot at every precinct,” he stated.

The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

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Braxton Haulcy and the Expansion of Walker|West Music Academy

May 24, 2023 – Walker West Music Academy gets an early start on expansion. Join us for a Wednesday episode of The …
The post Braxton Haulcy and the Expansion of Walker|West Music Academy first appeared on BlackPressUSA.

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May 24, 2023 – Walker West Music Academy gets an early start on expansion. Join us for a Wednesday episode of The …

The post Braxton Haulcy and the Expansion of Walker|West Music Academy first appeared on BlackPressUSA.

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