A Level Playing Field? Empirical Evidence That Ethnic Minority Analysts Face Unequal Access to Corporate Managers

Abstract

Given the lack of diversity among senior executives of U.S. public companies, we investigate whether ethnic minority analysts face unique barriers to management access. We find managers are less likely to select minority analysts to participate in the Q&A session of public earnings conference calls, and minority analysts selected to participate receive lower levels of prioritization and engagement than non-minority analysts. Minority analysts’ access to management does not improve over time or with companies recognized for workplace diversity. The consequences of unequal treatment extend beyond conference calls, as investors are less likely to vote for minorities as Institutional Investor All-Stars.