Having female managers on the board could improve a company’s share price, according to a French study.
Shares across 15 different companies in France have risen by 60% from 2006 to 2016 thanks to their female board members, according to research by Skema Business School in Paris.
The findings follow a nine-year study into the feminisation of business by Professor Michael Ferrary, who said: “The lesson businesses must learn is that having female managers on the board not only lends itself to the firm’s reputation, but also drastically affects its bottom line.
“By bringing in top female talent, companies are both increasing their intake of professionals and staying ahead of the curve. This applies not only at the top levels of business, but across the whole spectrum and around the world. In countries such as the UK, for example, only 2% of CEOs in all its listed companies are female, rising to 4% for senior managers – but this needs to change if businesses are looking to outperform their competition.
“It’s time for managers to sit up and take notice of the facts, not only for their own profitability, but for the many other benefits. Female board members are likely to increase a company’s reach – or at least effectiveness – due to their influence, yet this is not where their impact stops.