Gender diversity boosts corporate performance: report

Keywords Corporate governance,  Women Share this article and your comments with peers on social media Pandemic job losses hit women harder than men, StatsCan says Already suffering, working women face tougher future The study also found that when economic growth was relatively robust, there was little difference in share price performance between companies with, and without, women on the board. However, since the 2008 financial crisis, and the subsequent deterioration in the macro environment, stocks with women on the board have strongly outperformed those without any woman on the board. The report says that that the causation between greater gender diversity and improved profitability goes beyond the pre-existing strength of the company; refuting what some academics have argued, suggesting that there is no causation between more women on the board and greater profitability. It says evidence suggests that greater diversity can lead to better average performance, as this draws from a deeper talent pool, includes a better mix of leadership skills, and improves corporate governance and risk aversion. The inclusion of more women may also better reflect the companies’ customers. Stefano Natella, co-head of securities research & analytics, said, “This in-depth study provides investors with striking evidence that greater gender diversity is a valuable additional metric to consider when evaluating investments. The results of our analysis are irrefutable and for the first time offer a global view of this topic and a compelling explanation of why gender diversity adds value.” New research finds that large-cap companies with at least one woman on their board have outperformed their peers with no women on the board over the last six years. According to a report released Tuesday by Credit Suisse Research Institute, companies with at least one woman on the board have outperformed in terms of share price performance, exhibit higher return on equity, lower leverage and higher valuations. Related news Mature single women are wealthier than mature single men, StatsCan finds James Langton Facebook LinkedIn Twitter

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