Final answer:
Studies on the financial performance of companies with high levels of diversity have shown varying results. Some studies suggest a negative impact, while others indicate no correlation. However, there is evidence that companies with diverse leadership outperform others.
Step-by-step explanation:
Studies on the financial performance of companies with high levels of diversity have shown varying results. Some studies suggest that diversity has a negative impact on financial performance, while others indicate that there is no correlation between diversity and financial performance. However, there is also evidence to support the idea that companies with diverse leadership outperform others.
For example, a study by Hoogendoorn, Oosterbeek, & van Praag (2013) found that gender-balanced teams performed better than teams made up mostly by men, as measured by sales and profits. The study did not determine the relative performance of teams with more women than men, but it suggests that diversity can have a positive impact on financial outcomes. It is important to note that the influence of diversity on financial outcomes may vary depending on the specific context and industry. Overall, however, the research suggests that diversity can play a significant role in the financial performance of companies.