Vol. 21, No. 4, 2023
Mouhamadou M. Ba, Gerald T. Garvey, Brett Z. Miller and Katharina J. Schwaiger
Minority representation on US boards has grown more than 50% in the last eight years, but this reflects an increase in the number of seats for existing minority directors as much as a diversification of the director talent pool. We find that the share of minority directors only has a positive association with future returns if we restrict attention to those with less than four seats. Furthermore, there is a negative stock price reaction when a minority director obtains more than three seats on other boards. Diverse, non-busy boards are also associated with stronger employee ratings on social media.