| Study Looks at How Women Function on Corporate Boards |
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| Written by Robert Franklin, Esq. | |||||
| Wednesday, 12 August 2009 16:39 | |||||
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A new study published in the Journal of Financial Economics finds that women serving on corporate boards of directors produce mixed results depending on how well the company is run. According to the study's authors, Daniel Ferreira of the London School of Economics and Renee Adams of the University of Queensland, well-run companies tend to suffer reduced productivity and profits from the presence of women on the board, while poorly-run companies tend to experience the opposite effect. Read about it here (Daily Mail, 8/7/09). The researchers theorize that that's because women tend to function as outsiders on boards. They tend to not run in the same social circles as their male counterparts or play golf with them, and so tend to behave as mavericks. That means they're more likely to intervene in management decisions, which can be beneficial if management isn't doing a good job, but detrimental if it is. In short, the study finds that women serving on corporate boards tend not to know a good thing when they see it; they bring the same approach and assumptions to their oversight of companies irrespective of their performance. The study was conducted of 2,000 companies between 1996 and 2003 and was published against a backdrop that includes a claim by U.K. Equalities Minister Harriet Harman that the financial meltdown was all the fault of men in positions of corporate power. Thanks to Duncan for the heads-up. Quote this article on your siteTo create link towards this article on your website, copy and paste the text below in your page. Preview : Powered by QuoteThis © 2008
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