WOMEN CORPORATE DIRECTORS A PLUS DURING ECONOMIC CRISIS
During challenging economic times, companies with women directors performed better than companies with all-male boards. A new Credit Suisse report looked at 2,360 companies during a six-year period that spanned the years of the global economic crisis. It found that shares of large companies with female directors outperformed their peers by 26% during these difficult times.
“Stocks of companies with women on boards tend to be a little more risk averse and have on average a little less debt, which seems to be one of the key reasons why they’ve outperformed so strongly in this particular period,” states Mary Curtis, Director of Thematic Equity Research at Credit Suisse. The study showed that corporate debt was reduced faster in businesses with female directors as the global economic slowdown unfolded. Overall, the report implies that mixing genders on corporate boards temper risky investment moves. “Multiple academic studies have concluded that diverse corporate boards exercise more diligent oversight,” states the study’s author, Michelle Lamb. (Source: Bloomberg, 7/31/12)
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