Xinhua, Canberra :
Top Australian companies with at least a quarter of their boards comprising of females perform 7 percent better than companies with all-male boards, new data showed Thursday.
Analysis of the top 200 companies on the Australian Stock Exchange (ASX200) released on Thursday showed, since 2010, public companies with less-gender diverse boards recorded poorer results than those embracing female directors.
The research by the Centre for Gender Economics and Innovation and Infinitas Asset Management, published by Fairfax Media, found companies with companies with boards at least 25 percent female performed an average of 2 percent better per year than ASX200 companies generally.
The study backed up a 2011 report by consulting firm Catalyst called “Why Diversity Matters” which found companies with the most female board directors outperformed those with the least on return of sales by 16 percent and return on invested capital by 26 percent.
Companies are beginning to take notice of the positive impact women can have on boards. Since mid-2010, the number of ASX200 companies meeting the 25 percent female threshold has risen from 15 to 63.
Centre for Gender Economics and Innovation chairwoman Susanne Moore told Fairfax Media attitudes in the corporate environment were changing.
“Common sense would tell you that if you have a more diverse group sitting at the decision-making table, then you’re going to get more diverse ideas,” she said.
Infinitas Asset Management director Steve Macdonald told Fairfax Media the research was not saying women were superior to men but that diversity at the top of a company would result in better outcomes.
“We’re not claiming that women are such brilliant executives and much better than men and that’s the reason,” he said.
“It’s just that boards function better if there’s a variety of views sitting around the table.”
Top Australian companies with at least a quarter of their boards comprising of females perform 7 percent better than companies with all-male boards, new data showed Thursday.
Analysis of the top 200 companies on the Australian Stock Exchange (ASX200) released on Thursday showed, since 2010, public companies with less-gender diverse boards recorded poorer results than those embracing female directors.
The research by the Centre for Gender Economics and Innovation and Infinitas Asset Management, published by Fairfax Media, found companies with companies with boards at least 25 percent female performed an average of 2 percent better per year than ASX200 companies generally.
The study backed up a 2011 report by consulting firm Catalyst called “Why Diversity Matters” which found companies with the most female board directors outperformed those with the least on return of sales by 16 percent and return on invested capital by 26 percent.
Companies are beginning to take notice of the positive impact women can have on boards. Since mid-2010, the number of ASX200 companies meeting the 25 percent female threshold has risen from 15 to 63.
Centre for Gender Economics and Innovation chairwoman Susanne Moore told Fairfax Media attitudes in the corporate environment were changing.
“Common sense would tell you that if you have a more diverse group sitting at the decision-making table, then you’re going to get more diverse ideas,” she said.
Infinitas Asset Management director Steve Macdonald told Fairfax Media the research was not saying women were superior to men but that diversity at the top of a company would result in better outcomes.
“We’re not claiming that women are such brilliant executives and much better than men and that’s the reason,” he said.
“It’s just that boards function better if there’s a variety of views sitting around the table.”
