PeopleManagement.com recently reported on studies showing that firms with female directors are performing better than those run entirely by men. We thought this was an inspiring article and so we have summarised below.
In our modern world of increasing equality between all genders, ages and races, it would still be surprising to hear that women are finally contesting the top spot in the world of business. But recent studies have shown that we may have missed their crowning moment of parity and today’s business woman is already in the lead.
The traditional and somewhat dusty boardroom filled with men of all shapes and sizes have been knocked back a peg by their gender diverse rivals. Companies with female voices on the board and in the director’s suites have been outstripping their competitors. While not releasing their exact procedure, the Credit Suisse Research Institute has been monitoring the share prices of almost 2500 companies around the world since 2006. They have made a reserved statement that you would be better off to invest in female populated management boards, as on average those companies have been turning around higher share sales.
These companies have been making a 4% higher return on equity than those without women and they’ve also shown the same lead in their average growth. It would be hard to measure the reasons why, but research is pointing to a superior board effort, deeper talent pool and a healthier combination of management styles. Luckily for the economy, the ratio of female board members is swinging their way and so this can only spell improvement for us.
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