The Companies with Woman Directors on their Boards are strengthening in terms of monetary value than those with no women directors on the board. This is not because it is good for your public image and not only because you have to meet government norms rather because it makes good business sense and Boards with women provide better financial returns than those without.
That’s a detailed analysis of an expert group study on the subject on the relation between companies with women on their boards and profitability. An analysis of return on equity (ROE) data of top 100 Indian companies listed on BSE, provides that companies with women on their boards have a positive impact on ROE.
The study has revealed that the board of a private sector company, run with a mix of both men and women, helped ROE rise by 4.4% in 2014 over the last year. In contrary, a similar company with a men-only board saw its ROE rise by 1.8% in the same period.
It makes business sense to have good and solid leadership and gender diversity on the board of the Companies.
“So, it just makes sound business sense to have adequate levels of representation of both genders. The board discussions are a lot richer as a result of having a diverse representation on the board.”