Female board members improve share price, claims new study

business woman in boardroom with board membersEmploying female managers in boardrooms improves a company’s share price, according to new research from Skema business school released last week.

‘Observatory on the feminisation of companies’, a nine-year study into the feminisation of business, found that the 15 companies in the French CAC40 with the most female managers had significantly outperformed the 25 other listed companies.

Shares in these firms had risen by 60% from 2006 to this year, despite the overall benchmark falling by 4.43% in the period.

Michael Ferrary, author of the report, said “The lesson businesses must learn is that having female managers on the board not only lends itself to the firm’s reputation, but also drastically affects its bottom line.”

“By bringing in top female talent, companies are both increasing their intake of professionals and staying ahead of the curve. This applies not only at top levels of business, but across the whole spectrum and around the world.”

“In countries such as the UK, for example, only 2% of CEOs in all its listed companies are female, rising to 4% for senior managers – but this needs to change if businesses are looking to outperform their competition.”

He continued, “It’s time for managers to sit up and take notice of the facts, not only for their own profitability, but for the many other benefits. Female board members are likely to increase a company’s reach – or at least effectiveness – due to their influence, yet this is not where their impact stops.”

“Placing inspiring women at the top could motivate other female members of staff, directly enhancing their individual performances.”

“And with business so competitive, can companies really afford not to be strategically planning their board room gender ratios to maximise their bottom lines?”

About the author

Alison is the Digital Content Editor for WeAreTheCity. She has a BA Honours degree in Journalism and History from the University of Portsmouth. She has previously worked in the marketing sector and in a copywriting role. Alison’s other passions and hobbies include writing, blogging and travelling.
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