US-based researchers have found that the presence of women on boards is directly linked to high financial performance.
Dr Kris Byron from Syracuse University and Dr Corinne Post from Lehigh University have published the results of their recent research into female board presentation and its effect on financial performance in the Academy of Management Journal. The paper is titled “Women on Boards and Firm Financial Performance: A Meta-Analysis” and can be found online here.
A landscape study, the researchers aggregated results from 140 existing studies examining the relationship between financial performance and female board representation.
They found a strong correlation between the number of women on a board of directors, and positive accounting returns for the company. The results show that a larger number of females on boards results in directors that make stronger efforts to monitor company performance and strategy.
The results of this research demonstrate the strong tangible benefits of developing strong female leaders to take on executive positions across all Australian companies.