CORPORATE BOARDROOMS: NO MORE A MALE BASTION
For years women' rights groups have been arguing in favour of giving women more say and power in corporate boardrooms, and now a study has revealed that companies with women on their boards performed better in challenging markets than those with all-male boards suggesting that mixing genders may temper risky investment moves and increase return on equity.
FASCINATING RESULTS
Shares of companies with a market capitalization of more than $10 billion and with women board members outperformed comparable businesses with all-male boards by 26 percent worldwide over a period of six years, according to Credit Suisse Research Institute. The research, which includes data from 2,360 companies, shows a greater correlation between stock performance and the presence of women on the board after the financial crisis started four years ago. Net income growth for companies with women on their boards averaged 14 percent over the past six years, compared with 10 percent for those with no female director, according to the Credit Suisse study, which examined all the companies in the MSCI ACWI Index.
RISK AVERSION THE KEY
Stocks of companies with women on boards tend to be a little more risk averse and have on average a little less debt, which seems to be one of the key reasons why they’ve outperformed so strongly in this particular period.
The net-debt-to-equity ratio at companies with at least one female director was 48 percent, compared with 50 percent at all-male boards, and the study showed a faster reduction in debt at businesses with women on the board as the financial crisis and global economic slowdown unfolded.
WOMEN CALL THE SHOTS
While female representation increased to 59 percent last year from 41 percent at the end of 2005, countries such as Japan and South Korea are lagging behind the U.S. and Europe, which has added female representation the fastest over the six-year period. Larger companies have a higher proportion of women on their boards, as well as those in the health-care industry -- 73 percent have at least one female director -- and industries close to consumers, the study shows.
TIME TO BE MORE INCLUSIVE
The materials and information-technology sectors have the highest percentage of male-only boards, both at more than 52 percent, according the report. Traditionally some industries have just never really been seen as the domain of a woman, like some of the mining industries or heavy-capital goods industries, according to the report.
In the U.S., 36 percent of companies still have no women on their boards of directors, according to a report by researcher GMI Ratings on gender diversity released today. The average corporate board has about nine members.
For years women' rights groups have been arguing in favour of giving women more say and power in corporate boardrooms, and now a study has revealed that companies with women on their boards performed better in challenging markets than those with all-male boards suggesting that mixing genders may temper risky investment moves and increase return on equity.
FASCINATING RESULTS
Shares of companies with a market capitalization of more than $10 billion and with women board members outperformed comparable businesses with all-male boards by 26 percent worldwide over a period of six years, according to Credit Suisse Research Institute. The research, which includes data from 2,360 companies, shows a greater correlation between stock performance and the presence of women on the board after the financial crisis started four years ago. Net income growth for companies with women on their boards averaged 14 percent over the past six years, compared with 10 percent for those with no female director, according to the Credit Suisse study, which examined all the companies in the MSCI ACWI Index.
RISK AVERSION THE KEY
Stocks of companies with women on boards tend to be a little more risk averse and have on average a little less debt, which seems to be one of the key reasons why they’ve outperformed so strongly in this particular period.
The net-debt-to-equity ratio at companies with at least one female director was 48 percent, compared with 50 percent at all-male boards, and the study showed a faster reduction in debt at businesses with women on the board as the financial crisis and global economic slowdown unfolded.
WOMEN CALL THE SHOTS
While female representation increased to 59 percent last year from 41 percent at the end of 2005, countries such as Japan and South Korea are lagging behind the U.S. and Europe, which has added female representation the fastest over the six-year period. Larger companies have a higher proportion of women on their boards, as well as those in the health-care industry -- 73 percent have at least one female director -- and industries close to consumers, the study shows.
TIME TO BE MORE INCLUSIVE
The materials and information-technology sectors have the highest percentage of male-only boards, both at more than 52 percent, according the report. Traditionally some industries have just never really been seen as the domain of a woman, like some of the mining industries or heavy-capital goods industries, according to the report.
In the U.S., 36 percent of companies still have no women on their boards of directors, according to a report by researcher GMI Ratings on gender diversity released today. The average corporate board has about nine members.
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