Article
The relationship between shareholder wealth effects, diversity and publicity as a marketing strategy
Journal of the Academy of Marketing Science
(2005)
Abstract
Using theFortune diversity elite as a sample, the authors find significant initial shareholder gains, as measured by stock price reaction to firms publicizing their inclusion on the diversity elite list as a part of their marketing communication strategy. However, these initial effects do not materialize into higher annual measures of profitability (i.e., return on equity, return on assets, and return on investment) for these firms when compared with other similarly sizedfirms from similar industries in theFortune 1000 list. This suggests that for firms seeking enhancements in reportable measures of financial performance, having and publicizing a diverse workforce, including sales personnel, does not provide superior financial performance in comparison with other non-diversity elite firms. Shareholder wealth gains to these firms, however, are real and significant
Keywords
- diversity,
- wealth effects,
- marketing strategy,
- event study,
- publicity
Disciplines
Publication Date
2005
Citation Information
Vivek Pandey, K. Shanahan and S. Hansen. "The relationship between shareholder wealth effects, diversity and publicity as a marketing strategy" Journal of the Academy of Marketing Science Vol. 33 Iss. 4 (2005) p. 423 - 431 Available at: http://works.bepress.com/vivek-pandey/17/