The Effects of Racial Diversity on Firm-Level Outcomes Under the Use of Broad-Based Stock Options

Despite substantial scholarly attention to workforce demographic diversity, existing research is limited in understanding whether/when racial diversity relates to firm-level performance and workforce outcomes. Integrating theories and research on diversity and employee ownership, we propose that under the use (vs. nonuse) of broad-based stock options, racial diversity contributes to higher organizational performance, as well as higher levels of...