Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 9, 2021 erstellt
Beschreibung:
Using the economic setting of sell-side equity analysts, we demonstrate that racial/ethnic diversity does not always help minority groups. Race/ethnicity of analysts influences their forecasting style and accuracy, where these accuracy differences primarily reflect the effects of brokerage diversity. Surprisingly, the accuracy of minority analysts is adversely affected by brokerage diversity while White analysts benefit from higher brokerage diversity. The career outcomes of analysts are affected by brokerage diversity but stock market participants do not perceive diversity-based accuracy differences accurately. Collectively, these results suggest that potential benefits of racial/ethnic diversity may be reduced by within-group competition