Exclusive: Companies that kept policies did just as well financially, even after Trumpâs executive order, as those that didnât
For the research, Jacob Grumbach, an associate professor at at the University of California at Berkeleyâs Goldman School of Public Policy, analyzed how S&P 500 companies fared after Trumpâs January executive order. He used what economists define as âabnormal returnsâ â the difference between how a stock was expected to perform versus how it actually performed â to isolate the impact of a companyâs DEI decision.
What he found was the firms that kept their DEI policies or voted down anti-DEI shareholder resolutions did just as well financially, even after Trumpâs executive order, as firms that didnât. In the days after the executive orders were signed, companies that kept their DEI policies actually performed better on the stock market than those that didnât.
