This study documents robust associations between corporate equality policies and information asymmetry in capital markets. Using the Corporate Equality Index (CEI) for 217 U.S. Fortune 1000 firms over 2008 to 2024 (excluding 2023; 3,053 firm-year observations), we examine how CEI is related to three market microstructure proxies of information asymmetry—the quoted bid–ask spread, Amihud illiquidity, and the high–low price spread. Across fixed effects, system GMM, instrumental-variables (2SLS), quantile, and difference-in-differences specifications, higher CEI scores are consistently associated with tighter spreads, improved liquidity, and lower price-based uncertainty. The association is most pronounced in less transparent settings, consistent with the view that inclusivity initiatives may be particularly relevant where information frictions are highest. Overall, the findings align with signaling, stakeholder, and agency-based channels and indicate that inclusive governance investments can be linked to capital-market outcomes alongside social value; however, given endogeneity concerns, we interpret all estimates as conditional associations.
Gerçek ÖZPARLAK (Wed,) studied this question.