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Gender Diversity of Corporate Boards and Key Financial Metrics
Sunita Ahlawat

Last modified: 2015-12-02

Abstract


Gender diversity has been a topic of debate for some time. While males have dominated corporate boards for a long time, women are slowly making their way to the top echelons of the corporate world. Proponents of gender diversity suggest that women are able to bring a unique perspective to the board table especially since they are gaining experience at all levels. A survey on global trends in board diversity confirms a steady, albeit incremental, increase in female board membership. In this study, we compare key financial performance metrics of companies with gender diversity on boards with those that have no women on boards. Results show a significant difference between the two groups: companies with gender diversity on boards perform better than those that lack diversity. An important question remains, however: does diversity contribute to success or success invite diversity.


Keywords


corporate boards, gender diversity