Stocks Perform Better If Women Are On Company Boards

Heather Perlberg  for Bloomberg reports:

Shares of companies with a market capitalization of more than $10 billion and with women board members outperformed comparable businesses with all-male boards by 26 percent worldwide over a period of six years, according to a report by the Credit Suisse Research Institute, created in 2008 to analyze trends expected to affect global markets.

Net income growth for companies with women on their boards has averaged 14 percent over the past six years, compared with 10 percent for those with no female director, according to the Credit Suisse study, which examined all the companies in the MSCI ACWI Index.

The analysis doesn’t apply to IPOs, as evidenced by Facebook’s decline. Facebook appointed Chief Operating Officer Sheryl Sandberg as its first female director about a month after its May initial public offering; the stock is down nearly 50% since the $38 initial public offering in May.

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