Prior research provides evidence that lesbian, gay, bisexual, and transgender (LGBT)-supportive corporate policies are related to important human resource functions, such as enhanced recruitment and retention. In addition, prior research indicates that investors view the adoption of such policies positively. We examine the firm-performance mechanisms underlying favorable stock-market reactions based on an integration of perspectives from corporate social responsibility and the business case for diversity. Specifically, we estimate a hierarchical linear model (HLM) to account for the nested nature of our data (firms nested within states) and find that (1) the presence of LGBT-supportive policies is associated with higher firm value, productivity, and profitability; (2) the firm-value and profitability benefits associated with LGBT-supportive policies are larger for companies engaged in research and development (R&D) activities; and(3) the firm-value and profitability benefits of LGBT-supportive policies persist in the presence of state antidiscrimination laws. In supplemental analyses, we find that firms implementing (discontinuing)LGBT-supportive policies experience increases (decreases) in firm value, productivity, and profitability. We are among the first to link LGBT-supportive policies specifically to financial performance outcomes as well as to develop and test a multilevel model of these relationships. Our results have important implications for theory and research on LGBT issues in organizations, human resource managers, and policymakers. K E Y W O R D Scorporate social responsibility, diversity, firm performance, LGBT, resource-based view

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While current cost and managerial accounting texts devote extensive coverage to comparisons of actual and expected costs, relatively scant attention is devoted to analyzing comparable differences in revenues. Methods commonly used to identify differences between actual and expected revenues include the calculation of variances such as the sales price (SPV), sales quantity (SQV), and the sales mix (SMV) variances. We decided to approach the discussion of these variances in an innovative setting by presenting the SQV and SMV in the context of analyzing the performance of a basketball team, providing a setting that is both appropriate and interesting for illustrating revenue variances. Also, there are trade-offs in the choice between two of these “revenue” sources, for example, should the shooter attempt a two- or a three-point shot? Other relevant questions propel the decomposition of the SQV into the market size (MSV) and market share (MShV) variances. Was the game an offensive showdown, tallying numerous shots, or a defensive lock-down with relatively few shots? How effective was the team in controlling the ball and scoring a dominant proportion of shots? Feedback from students indicates that this illustration provides an interesting and comprehensive discussion of revenue variances. Using this and similar settings, a better understanding of quantity and mix variances, and the impact of these variances on improving performance, may be obtained.

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