A new study from the University of Waikato says increasing the number of women on boards of directors is good for business.
The report is released as the New Zealand Stock Exchange proposes new rules requiring all publicly listed companies to declare the number of women and minorities holding senior roles.
The study analysed ten years of data from NZX companies and found increasing the number of women on the board increased financial performance, director of the university’s Institute for Business Research Dr Stuart Locke says.
Dr Locke says companies “seem to ignore the talent available” from female graduates, and shareholders pay the price as a result. The average percentage of women on NZX top 100 boards is 9.3 percent.
The Australia Stock Exchange policy recommends publicly listed companies have a gender diversity policy – a move that led to a 50 percent increase in female representation on boards in less than two years.
Although women show a positive association with financial performance in New Zealand this isn’t the case in all economies, Dr Locke says, especially where female directors may be the spouse of the company owner and on the board for tax purposes.
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