Women’s positive impact on corporate performance
Greater gender diversity in companies’ management coincides with improved corporate financial performance and higher stock market valuations. A new Credit Suisse Research Institute study presents the financial evidence, looks at which regions and sectors show higher diversity levels and analyzes the obstacles to female participation in the workplace.
Enhanced female participation in management positions should not be seen as “nice-to-have” or a necessary box ticking exercise imposed to satisfy quotas. More women in senior management positions improves companies’ financial performance and makes a difference for investors in terms of equity market returns, according to a new Credit Suisse Research Institute study entitled “The CS Gender 3000: Women in Senior Management”. “The research, which expands on an initial 2012 study, provides striking evidence: higher returns on equity, higher price/book valuations and higher payout ratios,” said Stefano Natella, Head of Global Equity Research at Credit Suisse’s Investment Banking division. “We also found that greater diversity, along with female CEOs, tend to mean higher leverage, in stark contrast to the generally accepted association of women and financial conservatism,” he said. Does this mean that better companies hire more women, or that women chose to work for more successful companies, or that women themselves help improve companies’ performance? The most likely answer is probably a combination of the three. While the statistical findings highlighted in the report suggest that diversity does coincide with improved corporate financial performance and higher stock market valuations, Credit Suisse acknowledges that it is not able to answer the causality question and this is an important limitation to the observations made in the study.
The “Gender 3000”
The study is based on the “Credit Suisse Gender 3000” database, which the researchers developed by mapping the board structures and senior management of more than 3,000 companies worldwide. It composed of more than 28,000 senior managers, of which nearly 3,700 were women. The results showed that since the beginning of 2012 until June 2014, large companies with a market capitalization exceeding 10 billion US dollars and with at least one woman on the board have outperformed by 5 percent on a sector neutral basis. Lees of download hier het het hele onderzoek
Bron: Credit Suisse