Exploring the Women Factor | ETF Trends

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:

By Cinthia Murphy

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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.

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