Two Essays on the Impact of Workforce Diversity on Firms Performance

dc.contributor.advisorSanchez, Juan Manuel
dc.contributor.authorDang, Nhat-Anh Le
dc.contributor.committeeMemberNwaeze, Emeka
dc.contributor.committeeMemberSanchez, Daniela
dc.contributor.committeeMemberBachura, Eric
dc.date.accessioned2024-02-09T20:49:24Z
dc.date.available2024-02-09T20:49:24Z
dc.date.issued2022
dc.descriptionThis item is available only to currently enrolled UTSA students, faculty or staff. To download, navigate to Log In in the top right-hand corner of this screen, then select Log in with my UTSA ID.
dc.description.abstractThis dissertation comprises two essays exploring the impacts of workforce diversity on firms' operational performance. I define workforce diversity as the mix of employees from different ethnic/racial background (ethnic diversity) and different gender (gender diversity) in a firm's workforce. I gather and analyze firms' annual diversity reports (EEO-1 reports) to estimate the level of workforce diversity in S&P 500 firms. In the first essay of my dissertation, "The impact of Workforce Diversity on Labor Productivity and Investment Efficiency", I deconstruct labor productivity (ratio of total revenue over the total number of employees) into labor efficiency (ratio of total revenue over total employee cost) and average labor cost (ratio of total employee cost over the total number of employees) to analyze firms' labor-related operational effectiveness. I estimate firms' investment inefficiency as the residual of a regression predicting firms' total investment based on sales growth, investment opportunity, and internal financing capabilities. I find that firms with a more diverse workforce have higher labor productivity. However, different aspects of diversity, gender diversity or ethnic/racial diversity, have different impacts on firms' labor efficiency and average labor cost. Moreover, I find that ethnic diversity among the manager and higher-ranked employees drive firms' investment efficiency. Together, the results suggest that workforce diversity positively influences firms' operational performance. In the second essay, "The impact of Workforce Diversity on Corporate Innovation and Financial Performance", I measure innovation using research and development (R&D)expenditures scaled by total assets, the number of new patents generated, the total citations associated with new patents, and the total stock market value of the new patents. I estimate firms' financial performance using Tobin Q, market-adjusted average monthly stock returns, and market-adjusted annual stock return. I find that firms with a more diverse workforce have higher levels of innovation, both in terms of innovation input (R&D), output (new patents generated), and quality (patent citations and market value of new patents). Further analysis shows that only ethnic diversity increases firms' innovation, while gender diversity negatively impacts innovation in a few areas. Similarly, I find firms with a higher level of ethnic diversity, especially at the manager level, have higher financial performance. Together, the results suggest that workforce diversity positively influences firms' innovation and financial performance, providing evidence to support the cognitive resource diversity theory.
dc.description.departmentAccounting
dc.format.extent165 pages
dc.format.mimetypeapplication/pdf
dc.identifier.isbn9798841760610
dc.identifier.urihttps://hdl.handle.net/20.500.12588/3351
dc.languageen
dc.subjectWorkforce diversity
dc.subjectLabor productivity
dc.subjectInvestment efficiency
dc.subject.classificationGender studies
dc.subject.classificationEthnic studies
dc.subject.classificationaccounting
dc.titleTwo Essays on the Impact of Workforce Diversity on Firms Performance
dc.typeThesis
dc.type.dcmiText
dcterms.accessRightspq_closed
thesis.degree.departmentAccounting
thesis.degree.grantorUniversity of Texas at San Antonio
thesis.degree.levelDoctoral
thesis.degree.nameDoctor of Philosophy

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