A new study shows that female leadership is good for the bottom line of privately held companies, not just public ones.
A decade of research shows that public companies show better financial results when they have a significant number of women in leadership positions and on the board. Now a first-of-its-kind study shows that women give privately-held companies a financial boost as well.
Companies in the top quartile for gender diversity in senior management had an average return on sales of 18.1 percent, according to the study, published on Tuesday by Calvert Impact Capital, a non-profit founded in 1988 to invest in companies with environmental, social, and governance goals. Those in the bottom quartile had a -1.9 percent return on sales — a 20 percentage point gap.
The findings come as the investment management business and other industries are trying to address the #MeToo movement, which has inspired women to go public with stories of sexual harassment and abuse. But some male executives at financial services firms are handling it by avoiding many interactions with women altogether, according to a Bloomberg report published Monday.
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