TY - JOUR
T1 - Diversity and Career Trajectories: Evidence from LinkedIn Data on Race, Ethnicity, and Gender in Auditing
AU - Hoitash, Rani
AU - Ahn, Jaehan
AU - Hoitash, Udi
AU - Krause, Eric
N1 - Publisher Copyright:
© 2025 American Accounting Association. All rights reserved.
PY - 2025
Y1 - 2025
N2 - We use large, detailed data on individual auditor employment to examine the antecedents of turnover decisions and subsequent career paths of diverse individuals in public accounting—namely women and racial/ethnic minority groups (Asian, Black, and Hispanic). Despite investments in diversity, equity, and inclusion (DEI) recruiting by firms, we observe a higher likelihood of turnover among diverse auditors. Consistent with the principle of homophily, we find that same-group representation is crucial in retaining diverse auditors. These individuals are less likely to leave when surrounded by peers and leaders of the same group and are more likely to join an organization with greater same-group representation. We also find that most individuals leave the audit profession, but those who stay longer have higher seniority later in their careers—suggesting that extended tenure could mutually benefit firms and individuals. Our findings offer valuable insight for firms seeking to promote DEI while improving retention rates.
AB - We use large, detailed data on individual auditor employment to examine the antecedents of turnover decisions and subsequent career paths of diverse individuals in public accounting—namely women and racial/ethnic minority groups (Asian, Black, and Hispanic). Despite investments in diversity, equity, and inclusion (DEI) recruiting by firms, we observe a higher likelihood of turnover among diverse auditors. Consistent with the principle of homophily, we find that same-group representation is crucial in retaining diverse auditors. These individuals are less likely to leave when surrounded by peers and leaders of the same group and are more likely to join an organization with greater same-group representation. We also find that most individuals leave the audit profession, but those who stay longer have higher seniority later in their careers—suggesting that extended tenure could mutually benefit firms and individuals. Our findings offer valuable insight for firms seeking to promote DEI while improving retention rates.
UR - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4488379
M3 - Article
VL - 100
SP - 1
EP - 31
JO - The Accounting Review
JF - The Accounting Review
IS - 4
ER -