Companies with female leaders are outperforming their male-led counterparts.
A recent study by the Credit Suisse Research Institute found that companies with female leaders achieved a 36% higher return on investment than those with male leaders.
“With regards to business performance, we find clear evidence that companies with a higher proportion of women in decision-making roles continue to generate higher returns on equity, while running more conservative balance sheets” the authors of the Credit Suisse report wrote.
Why are companies led by women outperforming those led by men?
According to financial firm Mackenzie Investments, gender diversity in the executive team can enhance corporate governance and decision making in public companies.
When the people making decisions are coming from different backgrounds and perspectives, the result is often a more balanced and conservative decision.
Some commentators are suggesting that more female leadership could have massive economic gains at a national level. A recent report from the McKinsey Global Institute suggested that $150 billion to could be added to Canada’s GDP over the next nine years by increasing female participation at the executive level.
In line with the growing appreciation of social and governance factors in business across Canada, Mackenzie Investments has launched a fund specifically to promote gender diversity and the business leadership of women in public companies.
The fund, called the Mackenzie Global Leadership Impact Fund
, is sub-advised by Pax Ellevate Management LLC, a pioneer in sustainable, responsible and impact investing.