1. Li, Sherrerd, and Treussard (2018) provide a summary of research related to cognitive diversity and business outcomes.
2. See Graham et al. (2018) for a field survey that addresses the importance of culture across over 1,000 North American firms and the relevant references therein.
3. In addition to Woolley et al. (2010), see Page (2007) for an examination of the logic of cognitive diversity; Bohnet (2016) for a review of research on gender diversity, bias, and research-based solutions; and Nemeth (2018) for why culture is important to realizing improved decision making and creativity.
4. Kahneman (2011) provides a detailed explanation of the way humans think, and Bohnet (2016) offers a review of bias research, which includes both the impact of bias on decisions such as gender gaps and the ways to reduce the negative impact of our biases in our environment. Nemeth (2018) discusses humans’ natural preference to be liked and to join majorities, as well as the potentially negative impact of those tendencies on decision-making outcomes.
5. Bohnet (2016) and Gladwell (2005) provide more discussion of these biases. Of course, even if certain biases are removed from the hiring process, others remain and not all inequities are resolved. For instance, a female flutist with the Boston Symphony Orchestra is suing for equal pay with her male counterpart under a new state law in Massachusetts (Tsioulcas, 2018).
6. See Nemeth (2018) for a description of the failures and the lessons learned by the Kennedy Administration in 1961, which prevented subsequent poor decisions a year later during the Cuban Missile Crisis.
7. A number of studies, including Roll (1986), Boudoukh et al. (2007), Fama and French (2006, 2008, 2015), Hou, Xue, and Zhang (2015), and Ball et al. (2015), have contributed to the literature on the link between corporate attributes and return.
Ahern, Kenneth, and Amy Dittmar. 2012. “The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation.” The Quarterly Journal of Economics, vol. 127, no. 1 (February):137–197.
Arnott, Rob, Campbell Harvey, and Harry Markowitz. 2018. “A Backtesting Protocol in the Era of Machine Learning.” Available on SSRN.
Ball, Ray, Joseph Gerakos, Juhani Linnainmaa, and Valeri Nikolev. 2015. “Deflating Profitability.” Journal of Financial Economics, vol. 117, no. 2 (August):225–248.
Bisoux, Tricia. 2017. “Should B-Schools Be Hiring Blind?” BizEd (October 31).
Bohnet, Iris. 2016. What Works: Gender Equality by Design. Cambridge, MA: Belknap Press.
Bøhren, Øyvind, and Øystein Strøm. 2010. “Governance and Politics: Regulating Independence and Diversity in the Board Room.” Journal of Business Finance & Accounting, vol. 37, no. 9 & 10 (November/December):1281–1308.
Boudoukh, Jacob, Roni Michaely, Matthew Richardson, and Michael Roberts. 2007. “On the Importance of Measuring Payout Yield: Implications for Empirical Asset Pricing.” Journal of Finance, vol. 62, no. 2 (April):877–915.
Campbell, Kevin, and Antonio Minguez-Vera. 2010. “Female Board Appointments and Firm Valuation: Short and Long-Term Effects.” Journal of Management and Governance, vol. 14 (February):37–59.
Carter, David, Frank D’Souza, Betty Simkins, and Gary Simpson. 2010. “The Gender and Ethnic Diversity of US Boards and Board Committees and Firm Financial Performance.” Corporate Governance: An International Review, vol. 18, no. 5 (September):396–414.
Darmadi, Salim. 2011. “Board Diversity and Firm Performance: The Indonesian Evidence.” Corporate Ownership & Control, vol. 8, nos. 2:450–466.
Fama, Eugene, and Kenneth French. 2006. “Profitability, Investment, and Average Returns.” Journal of Financial Economics, vol. 82, no. 3 (December): 491–518.
———. 2008. “Dissecting Anomalies.” Journal of Finance, vol. 63, no.4 (August):1653–1678.
———. 2015. “A Five-Factor Asset Pricing Model.” Journal of Financial Economics, vol. 116, no. 1 (April):1–22.
Gladwell, Malcolm. 2005. Blink: The Power of Thinking Without Thinking. New York, NY: Little, Brown, and Company.
———. 2008. Outliers: The Story of Success. New York, NY: Little, Brown, and Company.
Graham, John, Jillian Grennan, Campbell Harvey, and Shivaram Rajgopal. 2018. “Corporate Culture: Evidence from the Field.” Duke Innovation and Entrepreneurship Initiative Working Paper No. 2016-33 (October 11).
Hermann, Aaron, and Hussain Rammal. 2010. “The Grounding of the ‘Flying Bank.’” Management Decision, vol. 48, no. 7 (August):1048–1062.
Hillman, Amy, Albert Cannella, and Ira Harris. 2002. “Women and Racial Minorities in the Boardroom: How Do Directors Differ?” Journal of Management, vol. 28, no. 6 (December):747–763.
Hou, Kewei, Chen Xue, and Lu Zhang. 2015. “Digesting Anomalies: An Investment Approach.” Review of Financial Studies, vol. 28, no. 3 (March 1):650–705.
Hunt, Vivian, Dennis Layton, and Sara Prince. 2015. “Why Diversity Matters.” McKinsey & Co (January).
Kahneman, Daniel. 2011. Thinking, Fast and Slow. New York, NY: Farrar, Straus, and Giroux.
Li, Feifei, Katrina Sherrerd, and Jonathan Treussard. 2018. “Unlocking the Performance Potential in ESG Investing.” Research Affiliates Publications (March).
Nemeth, Charlan. 2018. In Defense of Troublemakers: The Power of Dissent in Life and Business. New York, NY: Basic Books.
Nguyen, Hoa, and Robert Faff. 2007. “Impact of Board Size and Board Diversity on Firm Value: Australian Evidence.” Corporate Ownership & Control, vol. 4, no. 2 (Winter):24–32.
Novy-Marx, Robert. 2013. “The Other Side of Value: The Gross Profitability Premium.” Journal of Financial Economics, vol. 108, no. 1 (April):1–28.
Page, Scott. 2007. The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Princeton, NJ: Princeton University Press.
Post, Corinne, and Kris Byron. 2015. “Women on Boards and Firm Financial Performance: A Meta-Analysis.” Academy of Management Journal, vol. 58, no. 5 (October):1546–1571.
Roll, Richard. 1986. “The Hubris Hypothesis of Corporate Takeovers.” Journal of Business, vol. 59, no. 2 (April):197–216.
Singh, Val, Susan Vinnicombe, and Phyl Johnson. 2001. “Women Directors on Top UK Boards.” Corporate Governance: An International Review, vol. 9, no. 3 (July):206–216.
Tsioulcas, Anastasia. 2018. “Seeking Pay Equity, Female Flutist Sues Boston Symphony Orchestra.” NPR.com (July 5).
Woolley, Anita, Christopher Chabris, Alex Pentland, Nada Hashmi, and Thomas Malone. 2010. “Evidence for a Collective Intelligence Factor in the Performance of Human Groups.” Science, vol. 330, no. 6004 (October):686–688.