Best Practices: Music for Social Justice Videos Against Racism by Michigan State University  |  International Edu News: Whiteness of AI erases people of colour from our ‘imagined futures’  |  Leadership Instincts: British Academy honours ten Oxford academics  |  Leadership Instincts: NHAI Signs MoU with IIT Delhi for Setting UP Center of Excellence  |  National Edu News: Defence Institute of Advanced Technology wins 1st prize in Smart India Hackathon  |  Education Information: UPSC clarification on result of Civil Services Examination 2019  |  Leadership Instincts: SAI launches Khelo India Mobile App online training program  |  Leadership Instincts: SAI's Academic Council takes key decisions  |  Education Information: First ever online patriotic film festival kicks off on 7th August  |  Education Information: Ministry of HRD and MyGov jointly organise online essay competition  |  Technology Inceptions: Tiny Wearable UV Sensor to Measure Sunlight Exposure  |  Teacher Insights: Hybrid Model for Better Learning  |  Teacher Insights: Connect Kids to Nature Online  |  Teacher Insights: Brain is Always Active  |  Leadership Instincts: National Winners of the ATL Tinkering Marathon 2019  |  
February 13, 2020 Thursday 04:26:50 PM IST

Gender-diverse corporate boards reduce financial misconduct

Leadership Instincts

A new study by the University of Toronto, of more than 6,000 U.S.-listed companies found that firms with a mix of women and men on their boards outperformed those where boards had no women or only one, with fewer financial reporting restatements and a lower incidence of fraud. Diversity was key. The improvements levelled out once boards approached gender parity. That suggests the difference may come from a broadening of perspectives around the board table and not because women brought superior skills or other characteristics, said the study. The benefits of more women continued to increase up to about three female directors before starting to diminish, with an average total board size of about nine directors.

Only about 20 companies, mostly in apparel or cosmetics, had boards with a majority of female directors at any time during the decade, according to the research. The percentage of firms with at least one female director dropped during the period, from 56 per cent to 54 per cent. The percentage of women on boards that had any women increased from 7.6 per cent to 9.1 per cent.

(Content Courtesy: https://www.utoronto.ca/news/gender-diverse-corporate-boards-reduce-financial-misconduct-u-t-study) 


Comments