Gender Equality as Smart EconomicsThe World Bank GroupInternational Finance Corporation

Improved Financial Performance and Governance

A growing amount of research shows a correlation between a higher share of women in top management and a firm's financial performance and governance:

  • Fortune 500 firms with a high number of women executives outperform their industry median firms on three different measures of profitability. The firms with the very best scores for promoting women have been shown to be consistently more profitable than those whose scores were merely good. (Adler, Roy)
  • Companies with more women executives demonstrate better corporate governance practices. More diverse boards are also more likely to hold CEO's accountable for poor stock performance. (Women in the Boardroom and Their Impact on Governance and Performance)
  • Return on equity, return on sales and return on invested capital are higher in companies with at least one woman board member. Return on equity for companies with the highest percentages of women board directors is 53% higher than that of companies with lower percentages of women directors. (Catalyst)

Source: (Catalyst)

< Go Back