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Less fraud with more women

April 14, 2014

gender-decision-making

Corporate fraud costs around 5% of revenue each year. In the present climate of scarcity, many are turning to women to tackle white collar crime more efficiently. Are gender balanced boardrooms really a game changer?

A recent study that analyzed over thousand fraudulent cases in Chinese companies says yes. Cultural specifics aside, its findings did not come as a complete surprise. Other studies also concluded, the more male dominated the board, the higher the likelihood of fraud. That does not mean men are cheaters and females are honest, however women do suffer less from overconfidence, so their presence makes the whole board less prone to risky behavior.

Developed economies typically have less than 10% of women at the top, so there clearly is some room for improvement. Yet Slovenia, the country with the most female board members, admiring 20%, cannot be proud of its achievements. The Global Competitiveness Report lists corruption among the most problematic factors for doing business in this tiny EU country. Is Slovenia only an exception to the rule or may it take more than gender balanced boards to eradicate fraud?

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From → Hic Salta

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