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Gender balance brings stability

January 19, 2015

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Various studies have been showing gender diversity improves corporate performance. Some even believe the global financial crisis would have never happened if there had been Lehman Sisters in charge.

The latest Thomson Reuters study put more than 4,000 globally traded companies under scrutiny and found out that those with more women on boards show lower volatility and achieve better gains in stock price. If women improve corporate performance and reduce risk in crisis situations, how come investors do not support gender balance in their investment portfolios? Probably because majority of traders still believe that gender diversity is just a media thing. A Harvard’s study showed when a company appoints a woman to the board of directors, institutional traders usually sell shares and the stock price takes a dip, even when other profitability measures remain healthy.

The habits die hard, but for the first time in history over half of publicly traded companies in the US are having at least 10% women on boards. Maybe there are now enough women appointed, so female leaders can be viewed more through their merits and less through their gender.

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From → Hic Salta

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