Despite a plethora of academic research on the benefits of gender diversity in groups, corporations are painfully slow in adding women to their boards. The main question for investors, however, is whether the presence of women on boards improves stock performance. In order to answer this question, we evaluated the companies in the S&P500 Index in 2006 and tracked their performance for 10 years.
We looked at the gender makeup of the boards of companies in the S&P500 Index and tracked their stock performance over a ten-year period. We then divided the stocks into portfolios with zero women, one or more women, and more than 25% women on their boards. The results are fascinating, although not necessarily surprising given the breadth academic research on the benefits of cognitive diversity in teams.
These results do not imply that one gender is superior to the other, but that the combination of both genders has the potential to unlock value in publicly traded stocks.
To read our whitepaper – Impact of Women in Corporate Leadership: The Relative Stock Performance of Gender Diverse Boards, click this link below: