Having more women directors is good for business

21 Sep

Having more women on the board improves financial performance, according to research from the University of Waikato’s Institute for Business Research in New Zealand.

Dr Stuart Locke analysed 10 years of data from publicly listed New Zealand companies and concluded that more women on the board produced better financial results.

The New Zealand Stock Exchange is proposing new rules to require publicly listed companies to declare the composition of their boards, and reveal how many women and minorities fill director-level positions. The average percentage of women on the top 100 boards is 9.3%, and in public sector organisations it is 41%.

While Dr Locke did not explain how women boosted results, he said that the statistics proved that more women on the board make for higher profits – but suggested that it’s because women take a different approach to things. However, he lamented the lack of women at the top. “Most companies seem to ignore the talent available and their shareholders pay the price,” he said.

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