Thread by @realChrisBrunet

Over the past few years, @McKinsey has released at least 4 studies claiming a positive relationship between DEI and firm performance.

A new paper published today in @EconJWatch finds these results can't be replicated.

''Our inability to [replicate] their results suggests that ... they should not be relied on to support the view that US publicly traded firms can expect to deliver improved financial performance if they increase the racial/ethnic diversity of their executives.''

link:

econjwatch.org/articles/mckin…

i didn't contribute anything to this study, I just found it and tweeted it

but since this is going viral, you should subscribe to my substack anyways

I write about DEI:

karlstack.com

inb4 the New York Post sees this tweet and writes a story like ''McKinsey lied about DEI improving firm performance, new study reveals''

such a story would probably do gangbusters

you have my permission to write it

Here is a study from 2023 on the same subject, which concludes that McKinsey's DEI data is so cherrypicked that it's useless

''McKinsey’s panel data is not sufficiently representative for conclusions to be derived from an analysis based on companies within the dataset.

Consequently, McKinsey's conclusions are unreliable and cannot be generalized.'' ''

papers.ssrn.com/sol3/papers.cf…