A current study of the Austrian National Bank (OENB) now shows black and white: women at management levels are not only a profit for the corporate culture, but especially for the account. The figures speak for themselves: more female supervisory plates mean higher profit, fewer risks and sustainable growth.
These are the results of a study by the National Bank (OENB), which, according to the authors, proves for the first time a deeper causal relationship between a higher quota for women in the supervisory board and the success of the company.
Ten percent more women, one percent more profit
“Our study shows on an empirical and causal basis that a larger proportion of women in the supervisory councils of large companies are not only ethical or social, but especially economically wise,” the authors write in a blog post from the National Bank.
In particular, the authors, for example, show that ten percentage points of more women in the committee result in about one percentage point more stock reduction. Likewise there were “statistically significant and positive effects” for the total capital redevelopment of companies.
Companies of women also more stable
But other key figures are also positively influenced by a higher quota for women in the supervisory councils: in addition to increased profitability, the authors show that more women in the committee cause a lower degree of guilt – and therefore contribute to the stability of the companies. The sustainable growth rate (“sustainable growth percentage”) of the companies investigated was also reinforced by a higher quota for women.
“This result is particularly relevant, because so far there is little empirical evidence about the connection of the female board ratio (FBR) and the sustainable growth of companies,” the authors explains. The study is based on a broad data record of the largest listed American companies (“S&P 500 companies”) for a period of 20 years.
“Strategic enrichment for the board”
The results in the newspaper are justified by the fact that women “represent a valuable strategic enrichment for the board by bringing unique skills, special knowledge and different perspectives”. “It is believed that these qualities strengthen corporate governance, improve the supervisory competence of the control organ and increase advisory efficiency.” New impulses are also mentioned in strategy or risk problems or better team dynamics.
The results are also a considerable general economy: a higher quota for women on supervisory boards “increases the real GDP per head of the population, the nominal GDP growth, gross information and reduces the unemployment rate”. “Companies and economies must therefore actively work on greater integration of women in top management,” concludes the students.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
