During the stock market crisis of 2020, a portfolio made up of shares of companies whose management is more than 40% feminized outperformed the CAC40, we learn from the Skema Observatory of the feminization of companies.
The positive impact of feminized governance bodies, an observation that has not been denied since 2009
This observation has been repeated every year since 2009: there is a positive correlation between the presence of women on the board of directors and on the executive committee of a listed company on the one hand and the financial and stock market performance of this company. on the other hand, we learn from the latest edition of the Skema Observatory on the feminization of companies carried out by Professor Michel Ferrary of Skema Business School.
To realize this, Michel Ferrary compared three categories of companies: those with a female board of directors and an executive committee (the “Gender Equality Index”), then companies where women are absent from these institutions ( the “Male Index”) and, finally, the companies of the CAC40, that is to say the traditional stock market index as it is. Once again this year (study conducted on the basis of the 2020 annual results), companies belonging to the first category ended the year with better financial results and a better stock market performance.
Both on the board of directors and the executive committee, the presence of women is a guarantee of financial performance
In 2020, the 1-year operational profitability of the 10 companies with the most female management was 106.22% higher than the profitability of the 10 companies with the least female management. And over the 2016-2020 period, their profitability was 79.13% higher.
The same observation is repeated concerning the feminization of the executive committee: the operational profitability over 1 year of the 10 companies with the most feminized executive committees is 68.80% higher than that of the 10 companies with the least feminized executive committees. Over the 2016-2020 period, the profitability gap is 48.42%.