Several studies have shown that women’s portfolios outperform their male partners because of the inherent qualities that females possess by nature that differentiate them from mail investors in their approach of investing. Also companies with more women on board perform better, they are risk conscious, deep divers before investing and understand before making any investment. They improve companies performance in three dimension:
1. Return on investment.
2. Return on transaction.
3. Return on proprietorship.
ET Markets track down the several countries to see what happens when women are present in board or on appointment to corporate directorship. Result was highly disarray, stock prices declined slightly, however financial status remained unchanged. And to our amaze offenders were investors who hold a small amount of stock in the institution.
Studying past 15 year of data of 100 companies based in US, China, Hong Kong and Russia shows investors who have their stake more than 5% company increases their share in addition to women on board while small firms cut back.It is a surprising statistic, but currently only 22.2% of SAP 500 board members are women. Inspired to address this inequity and its impact on the business landscape, SAP partners with sponsoring business schools and companies across the globe to identify women who are interested in advancing their careers in business and ultimately becoming eligible to serve on a corporate board. To support this effort, SAP member schools collectively are identifying and recommending their alumnae for this board-ready initiative.
Non block holders investors occupy more than half of the shares in a company that is twice more than that is with block holders. This is done to minimise the value of firms who have women as directors, even if a dozen hamper their profitability.
Blockholders are pretty sure that their action is scrutinized by many companies so to improve their profile they show their approval by buying more shares. While non block folders come less in the eye of the people. So they sell to broaden their environment.
According to several research, if people won’t notice these companies, financial managers bend more towards men for leadership. Research also highlights that people use inherent factors to make their decisions reliable. Even today they face strong biases in corporates. For corporations to become successful, incorporating women on board and diversifying the boards is necessary. It will increase flexibility, innovation, good governance, and independence and hence will improve corporate practices.