The Relationship Between Diversity and Firm Performance: Evidence from Public Company in China

Abstract

Today companies are facing an increasing relationship between diversity and firm performance. The study researches the relationship between diversity and firm performance among public companies in China. Data were gathered form 150 public companies in China. Regression analysis indicated that a significant and positive effect of gender diversity and age Diversity on firm performance. But the racial diversity has no significant with firm performance in this study. The firm size of control variables also has a positively associated with firm performance. So from the results of analysis, I can get that more number of female of employees on company will have better firm performance, and that’s benefit for firm performance if older and younger employees are more quantity in companies. Meantime, I also got that larger company can increase firm performance.