“Greater diversity in boards and management are empirically associated with higher returns on equity, higher price/book valuations and superior stock price performance,” this from the Credit Suisse Research Institute which analyzed 28,000 executives across 3,000 companies. The study, The Credit Suisse Gender 3000: Women in Senior Management, measures the benefits of diversity to all stakeholders including corporates, investors and the wider environment.
· One beats none. Companies with at least one woman on their board outperform those with none.
· Diverse boards outperform. Companies with more than one woman on their board have returned a compound 3.7% excess a year over those that have none.
The study is notable too for its qualitative insights:
· Understanding Causality The study is clear to disavow conclusions about cause and effect. Do better companies hire more women; do women choose to work for more successful companies; or do women themselves improve companies' performance? “The most likely answer is all three.”