Earlier this year we started exploring the impact social equity, or more specifically, women in leadership roles can have on companies’ bottom lines. From increased profitability to improved share prices across the Russell 3000 universe, the so-called “women factor” remains an interesting notion, and one that we are hoping to explore further.
This week, we are advancing the conversation around this factor, or theme, with Daniel Sandberg, who leads the S&P Global Market Intelligence’s Quantamental Research team. Sandberg has been at the forefront of the effort to quantify the impact women have on overall company results.
His latest research paper titled “Breaking Boundaries: Women Poised for Milestone Achievement in Parity Amid Otherwise Bleak Outlook” finds that the U.S. marketplace is moving toward gender parity in leadership roles, which could be achieved as soon as 2030, but progress remains uneven, and it’s currently centered on board of directors rather than C-suite positions.
Why does this matter?
“Research has shown that a more diverse workforce can make a company more profitable. Diversity could also have an impact on the long-term value of the firm. A study by S&P Global published in 2019 showed that firms with a woman in the position of CFO were more profitable and generated excess profits of $1.8 trillion. Companies with a woman in the position of CEO or CFO produced superior stock price performance compared to the market average, while firms with more women on their boards were more profitable than firms with low gender diversity,” the research paper says.
Check out the conversation with Sandberg in its entirety below:
All investments involve risk, including the possible loss of principal. The content provided in this article is intended solely for informational purposes and should not be construed as individualized investment advice or recommendations. Before making any investment decisions, readers are encouraged to review their own financial situation and objectives and seek professional advice if needed. The investment strategies discussed here may not be suitable for all investors.
The opinions expressed in this article are subject to change without notice in response to evolving market conditions and emerging trends. The data presented herein is sourced from third-party providers that are considered reliable; however, its accuracy, completeness, or reliability cannot be guaranteed.
Any examples provided in this article are for illustrative purposes only and should not be interpreted as a guarantee or assurance of similar results. Actual results may vary, and past performance is not indicative of future outcomes.
The article discusses the impact of gender diversity in leadership roles on company performance. It cites a study by S&P Global from 2019 that reported potential benefits, such as increased profitability and stock price performance, associated with women in executive positions. Readers should note that these findings are based on historical data and may not reflect current market conditions.
The information in this article is confidential and proprietary and is intended solely for use by the intended user. No part of this material may be reproduced, distributed, or published without prior written permission. Distribution of this material may be restricted in certain jurisdictions, and readers are responsible for understanding and complying with any applicable restrictions.
The authors and publishers of this article do not accept any liability for any loss or damage arising from the use of the information presented herein. Readers are encouraged to exercise caution and conduct their own due diligence before making any investment decisions. The content in this article is not an offer to buy or sell any security or investment product.