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Story perspectives

California Diversity Mandates Questioned After Stock Surge

2/14/2025

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Story summary
  • California's laws for female and minority representation on corporate boards were deemed unconstitutional in 2022.
  • A study revealed California firms' stock values rose after the court rulings.
  • Non-compliant firms experienced higher gains than compliant ones, indicating potential negative impacts of diversity mandates.
  • These results question the assumption that diversity mandates improve corporate performance.