Having women on corporate boards could be more vital than - TopicsExpress



          

Having women on corporate boards could be more vital than businesses think - because they could save a considerable amount of money on new deals. Researchers at the University of British Columbias Sauder School of Business analysed 458 successful acquisition bids made by S&P 1500 US companies between 1997 and 2009. The difference between the final offer price and the stock price of the targeted firm before the deal was signed was compared with the number of women present in each boardroom at the time. It was found that the price of a successful acquisition is slashed by 15.4 per cent for each female director added on a board, while the number of takeover bids against those companies was also cut by 7.6 per cent. Co-author Professor Kai Li said in the Journal of Corporate Finance that women seem to mitigate the empire-building tendencies of male chief executives because they are less interested in risk and more focused on returns. This finding adds fire and force to recent calls to mandate a minimum number of women on the boards of publicly traded companies, she added.
Posted on: Tue, 21 Jan 2014 17:01:21 +0000

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