Companies with women on boards fare worse on stock market.Byline: ANI Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , August 14 (ANI): Companies in which women are board members fare worse on the stock market, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a study conducted by researchers at the University of Exeter. The researchers have found that companies with female board members this face stockmarket prejudice despite performing as well on all other measures as those with all-male boards. Writing about their observations in the British Journal of Management, they say that shareholders respond negatively to women being appointed to their boards, causing share values to decline. The researchers conducted a comprehensive analysis of performance data from all FTSE FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times. Notes: The FTSE is similar to Standard & Poor's in the United States. 100 companies between 2001 and 2005, which found that companies with all-male boards had a market valuation equivalent to 166 per cent of their book value, while companies with at least one female board member had a market value equal to just 121 per cent of book value. They, however, also noticed that appointing a woman to a company board did not compromise objective measures of financial performance, specifically, Return on Assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). and Return on Equity. In fact, they found that, as a whole, companies with women on their board were a far better investment than those without. The researcher say that their findings suggest that shareholders systematically over-value companies with all-male boards, while being unenthusiastic about the appointment of women to senior positions. They say that this is despite there being no evidence that women's appointment has an adverse impact on company's performance. The findings also fit with previous research from the University of Exeter which has shown that women are appointed to leadership positions when a company is in crisis. Dubbed dub 1 tr.v. dubbed, dub·bing, dubs 1. To tap lightly on the shoulder by way of conferring knighthood. 2. To honor with a new title or description. 3. the 'glass cliff' phenomenon, this trend involves women being placed in precarious positions when there is a high risk of failure. This has led to women being associated with weak performance. Lead author Professor Alex Haslam S. Alexander Haslam (Alex Haslam) is a Professor of Social Psychology in the School of Psychology at the University of Exeter. His research is in the area of social and organisational psychology, exporing issues of stereotyping and prejudice, tyranny and resistance, , a psychologist psy·chol·o·gist n. A person trained and educated to perform psychological research, testing, and therapy. psychologist at the University of Exeter, said: "Our study shows very clearly that shareholders tend to devalue companies with women board members and to chronically over-value those with all-male boards. What is not clear is whether this is because shareholders feel that women perform less well on boards than men or whether they see a woman's appointment as a signal that the company is in crisis. Whatever the reason, it is clear that this response is unwarranted, because there is no objective evidence that having female board members damages a company's performance. If anything, the opposite is true." (ANI) Copyright 2009 Asian News International The Asian News International (ANI) agency provides multimedia news to China and 50 bureaus in India. It covers virtually all of South Asia since its foundation and presently claims, on its official website, to be the leading South Asia-wide news agency. (ANI) - All Rights Reserved. Provided by Syndigate.info an Albawaba.com company |
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