Asian-Americans are more likely to be hired as CEO when companies are failing.
According to Study Finds, failing companies are more likely to hire Asian-Americans as CEOs to turn around their corporations.
Indentified as those with roots from China, South Korea, Japan, Vietnam and neighboring countries, Asian-Americans who are hired as CEOs for companies in dire straits open themselves up for a higher risk of failure.
Researchers found that Asian-Americans are more “self-sacrificing”, encouraging employers to hire them in risky situations.
“It’s important to understand that some seemingly positive stereotypes about minorities may appear to be silver linings on the surface, but they often obscure underlying challenges that perpetuate discrimination,” lead researcher Dr. Seval Gündemir said.
Names of 4,951 CEOs from publicly traded companies in every major industry found in North American databases since 1967 were taken in the study. Only 41 Asian-American CEOs were found, even though the demographic is the fastest growing minority group in the US.
Asian-Americans were hired 2.5 more often during a company’s decline compared to when a company is successful. Whites, Hispanics, and African-Americans were not as likely to be hired when a business was failing.
