COMMITTEE CHAIR: Dr. Anish Shankar Menon

TITLE: SHARED IDENTITY, SHARED TRUST: THE ROLE OF LEADERSHIP REPRESENTATION AND ADVISOR RACE IN SHAPING MINORITY INVESTMENT PARTICIPATION

ABSTRACT: Persistent racial disparities in stock market participation constrain wealth accumulation among African American and Latino households.  This study examined how two forms of representation, a firm’s cultural-sensitivity disclosure (an organizational signal) and the advisor’s racial identity, shape trust and influence investor participation among these groups.  Drawing on social identity theory, signaling theory, and the impression-formation/stereotype-reconciliation literature, this study hypothesized that disclosure and a minority advisor independently increase trust, that the cues would be complementary, and that trust would mediate their impact on participation . A 2  × 2 between-subjects experiment with African American and Latino adults tested predictions using ANOVA, ANCOVA, and PROCESS mediation models. Cultural-sensitivity disclosure significantly increased trust, fully mediated by perceived firm inclusivity, and trust transmitted this effect to investment participation. Advisor race affected neither trust nor participation, yielding an unsupported prediction. Perceived inclusivity and trust emerge as the mechanisms linking organizational representation to minority investment participation.

Keywords: Cultural sensitivity, trust, investment intentions, salience, advisor, identity

Room Location: Northwest Campus, Room 204