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P&I: REITs with female board member see better returns, study finds
“According to the study released this month, the returns for REITs with a woman on their boards for more than three years was 2.6 percentage points higher than those that did not. The difference was 3.6 percentage points higher than peers with all-male boards over a five-year horizon and 3.4 percentage points higher than their peers over a 10-year horizon.”
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The Bottom Line: Corporate Performance and Women’s Representation on Boards (2004–2008)
“Companies with the most women board directors (WBD) outperform those with the least on ROS by 16 percent. Companies with the most WBD outperform those with the least on ROIC by 26 percent.
Companies with sustained high representation of WBD, defined as those with three or more WBD in at least four of five years, significantly outperformed those with sustained low representation by 84 percent on ROS, by 60 percent on ROIC, and by 46 percent on ROE.”
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Standard and Poor’s (S&P) 1500 companies for the years 2003-2007
“We find the evidence on the business case .for women directors is mixed, but tends to support the view that the ability of women directors to influence profitability and shareholder value is contingent on the specific circumstances of each company.”
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Women in the workplace
“Women on boards not only benefit company profitability, but contribute in other intangible, yet important, ways. For example, appointing women to boards leads to a better public reputation for the organisation.”
The State of Queensland (Department of Education and Training) 2011
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Women Will Rule the World
“When historians write about the great recession of 2007–08, they may very well have a new name for it: the Mancession. It’s a term already being bandied about in the popular media as business writers chronicle the sad tales of the main victims of the recession: men. They were disproportionately represented in the industries hit hardest during the downturn, including financial services, manufacturing, and construction, and their higher salaries often put them first in the line of fire. Men are the victims of two thirds of the 11 million jobs lost since the recession began in 2007; in August 2009, when U.S. male unemployment stood at 11 percent (versus 8.3 for women), it was the largest unemployment gender gap in the postwar era.”
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In the book, Beyond Race and Gender, R. Roosevelt Thomas defines managing diversity as
“a comprehensive managerial process for developing an environment that works for all employees. Successful strategic diversity programs also lead to increased profits and lowered expenses.”
Article on workplace, diversity by Judith Lindenberger and Marian Stoltz-Loike
Diversity in a Company Expands Sales, Profit and Customer Numbers
“Herring’s analysis of National Organizations Survey data for 506 US-based businesses also found that diversity levels and profits relative to peer companies rose in tandem.”
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Better Bottom Line
“Two organizations have delivered the first studies suggesting a link between gender balance and performance, Catalyst, the US research organisation and McKinsey & Company. Taking very different approaches to the data, they both came up with very similar results: that having more women in leadership is correlated with stronger financial returns. (And they are not the only ones to show the link. Besides another study of North American companies, similar proof is available for France and Vietnam, among others.”
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Profit, Thy Name Is Woman?
“The consistent correlation between women executives and high profitability. After years of tracking the performance of about 200 of the Fortune 500 companies (those that provide a gender breakdown of their executives), Roy D. Adler and his colleagues at the California school consistently found the “correlation between high-level female executives and business success has been consistent and revealing.” And the better a company was at promoting women, the better it tended to rank in terms of profitability.”
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Profit Through Diversity Hiring
“According to the research, as racial and gender diversity levels increased in a company’s workforce, its profits relative to those of its competitors also increased.”
ScienceDaily and American Sociological Association, via EurekAlert!, a service of AAAS.
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“One study, conducted over 28 years and published in the Harvard Business Review, evaluated 215 Fortune 500 companies. Compared with the median companies in their industries, organizations with a higher number of women executives performed better with respect to profits as a percentage of revenue, assets and stockholders’ equity, by a range of 18% to 69%.”
The University of California/Davis’ Graduate School of Management surveyed the 200 largest publicly traded companies in California
“This survey concluded that having more women in top leadership roles results in “stronger relationships with customers and shareholders and a more diverse and profitable business. Researchers at the University of Delaware found a positive stock-price reaction following publicity over diversity-promoting initiatives. These studies suggest a correlation between boosting the number of female executives and an increased bottom line.
Our interviews with women executives provided some insight into qualities women typically possess that may give rise to enhanced profitability. As Barbara Kolsun, General Counsel for jean-manufacturer 7 For All Mankind stated, “Women are skilled at efficiency, mediation, getting to the heart of matters quickly, communication and consensus building, skills that have critical impact on a bottom line. The actual experience of many companies also indicates that including women in leadership provides a financial benefit. For example, in 1995, IBM launched its women’s task force, focused on increasing opportunities for women within the company. IBM’s executive ranks included 185 women, accounting for 11.2% of its executive population, none of whom were country general managers. At that time, IBM’s stock price was in the low 30s, adjusted for two subsequent splits. A little more than a decade later, there are more than 1,045 women executives within IBM worldwide, making up 19% of its executive population. Ten are country general managers. IBM’s stock price is now around 80.
IBM, DuPont, Georgia-Pacific… The studies and the experiences of these three companies show a relationship between women leaders and positive financial results. It stems from better identification with consumers, diversity of thought and approach, and access to a broader talent pool.”
Robin Cohen and Linda Kornfeld are, respectively, managing partners at the New York and Los Angeles offices of Dickstein Shapiro. They both are partners in the law firm’s insurance-coverage practice, representing corporate policyholders. © 2006 Dow Jones & Company.
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Develop Your Generation Y Women to Improve Profits
“According to a study originally published by Bloomberg L.P., they surpass others by as much as 69 percent. That’s a staggering figure, but when you look at the data it makes sense.”
Consider these findings from the 2007 report, Women as Consumers: Transforming the Marketplace (National Foundation for Women Business Owners)
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Firms with More Women in Charge Are Faring the Economic Crisis Better
“We’ve noted before where Michel Ferrary has proved that companies with more women in management have survived the financial crisis better.”
Avivah Wittenberg-Cox at 20-first
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Women Leaders and the Bottom Line
Robin Cohen and Linda Kornfeld, managing partners of the New York and Los Angeles offices, respectively, of Dickstein Shapiro LLP, a national law firm with more than 375 attorneys
“Popular discussions about gender diversity often reveal issues of social importance, such as an iron‐clad “old boys’ network,” the “glass ceiling,” a lack of mentors, and work‐life balance challenges, all of which are unquestionably important. However, our research tells us that the business‐oriented analysis of why women should be a significant presence in corporate America is compelling: gender diversity increases financial performance.”
As per studies by Harvard and other.