European companies with greater gender diversity are less likely to be targeted
European businesses that have more female directors are less likely to be targeted by activist investors, according to an analysis that will bolster demands for greater board diversity.
A study of 1,854 public groups by the Alvarez & Marsal consultancy showed that companies not targeted by hedge fund activists had, on average, 13.4 per cent more women on their boards.
Activist investors typically take positions in underperforming businesses, using their shareholding to push for change.
Paul Kinrade, managing director at A & M, which monitors shareholder activism, said there are many factors that can result in a business coming under scrutiny from activists, including diversity.
www.ft.com
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