This might help explain why corporate boards are still an old boy’s club
Author(s): Jena McGregor | Date: October 11, 2016 | Language: English
Source: https://www.washingtonpost.com/ | URL: https://goo.gl/8npohx | Type: Text
Companies with the highest percentage of female directors have been shown to outperform on return on equity, return on sales and return on invested capital. They pay less to gobble up other firms. They have lower stock price volatility. And those with more women at the top have even been shown to have fewer governance controversies, such as bribery and fraud. There’s enough evidence — even if some is mixed — that some investment firms have launched products geared toward generating higher returns by investing in female-led companies.
Yet according to a new report, men in the boardroom don’t yet seem to buy the idea. A survey released Tuesday by PwC of more than 800 corporate directors found that just 24 percent of the male respondents believed board diversity improves corporate performance, while an overwhelming 89 percent of female directors believe it does. Meanwhile, just 38 percent of the men said it improves board effectiveness, while 92 percent of women agreed that it does.
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