George Floyd’s murder caused many firms to reveal how exposed they are to racial diversity issues. We examine investor and firm behaviors after this socially significant event to provide evidence on the valuation effects of the exposure and ensuing corporate responses. We develop a text-based measure of a firm’s exposure to racial diversity issues from conference call transcripts and find that, after the murder of George Floyd, firms with diversity exposure experience a stock price decrease of approximately 0.7% around the date of the conference call. Initiatives taken by firms mitigate the negative market reaction.

As major health systems continue to merge, one of the main questions for commentators and researchers concerns the somewhat vague idea of community benefit. The Atrium Health–Advocate merger is set to provide approximately $5 billion in annual community benefit, targeted to aid vulnerable communities and individuals. Community benefit can be understood as any action, investment or program provided by a tax-exempt hospital or health system that promotes the health and wellness of the community they serve. In addition to community benefit, Advocate Health described a $2 billion pledge to disrupt the root causes of health inequities across the rural and urban communities it serves.

As a magnet for both population and employment growth, North Carolina has a propitious opportunity to create an inclusive and equitable entrepreneurial and small business ecosystem to support the state’s newfound prosperity.