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By Vivian Hunt, Dennis Layton, and Sara Prince

We know intuitively that diversity matters. It’s also increasingly clear that it makes sense in purely business terms. Our latest research finds that companies inthe top quartile for gender or racial and ethnic diversity are more likely to have financial returns above

their national industry medians. Companies in the bottom quartile in these dimensions are statistically less likely to achieve above-average returns. And diversity is probably a competitive differentiator that shifts market share toward more diverse companies over time.

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