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Prior research has shown that companies' diversity efforts lead to improved company performance and market value. However, measuring and comparing diversity is a challenge for firms since there is not a comprehensive, universally accepted method to measure firm diversity. This study evaluates three publicly available proxy measures (the Human Rights Campaign Foundation's Corporate Equality Index (CEI) ratings and Bloomberg's environmental, social, and governance (ESG) scores, and a Board of Directors gender diversity index) that report on various aspects of firm diversity to assess which are most closely associated with long-term company value using panel regression. We find that higher CEI ratings and Bloomberg's ESG scores are significantly associated with higher Tobin's q levels. A Granger causality analysis found evidence that diversity efforts at firms lead to higher future market performance, not that firms with better market performance are more likely to increase their diversity.

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This is the peer reviewed version of the following article:

Foster, B. P., Manikas, A. S., & Kroes, J. R. (2023). Which Diversity Measures Best Capture Public Company Value? Corporate Social Responsibility and Environmental Management, 30(1), 236-247,

which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.

Available for download on Wednesday, January 01, 2025