A recent study by the Credit Suisse Research Institute finds that companies with women on their boards perform better in challenging markets than those with all-male boards. The report identifies several reasons why greater gender diversity could be correlated with stronger corporate performance, including:
- Women tend to be more risk averse and may temper risky investment moves;
- A signal of a better company -- for example, it may signal greater focus on corporate governance and that the company is already doing well;
- Greater effort across the board -- for example, more diverse groups may prepare more and consider a wider range of available data inputs;
- A better mix of leadership skills; and
- Access to a wider pool of talent.