Companies with gender-diverse boards are performing better than less diverse peers, with annual returns up to 5% higher for firms with more women in senior positions according to Bloomberg Intelligence. Board diversity has been gathering momentum, with the number of women in boardrooms having tripled to 26% in 2023 from under 9% in 2010, driven by regulations and shareholder activism. Bloomberg Intelligence’s study found that having more women on boards and in leadership roles reinforced fundamental financial analysis, bolstered ESG credentials, and helped investors make more informed decisions. France led the race on gender diversity with a female board ratio of 45%, followed by the UK with 42% of women board representation. However, boardrooms in emerging markets were found to be trailing on global standards for gender diversity, lacking market and regulatory support. In Latin America, more than 10% of companies have no female directors. There is also a deficit of women in executive leadership positions, with only 6% of female CEO roles globally and 3% in emerging markets. “Women capital drives value, gender diversity reinforces fundamental analysis and could help investors make more informed decisions, while also demonstrating better ESG credentials”, said Adeline Diab, Director of Research and Chief ESG Strategist at Bloomberg Intelligence. “More diverse boards often result in higher profits, stronger valuations and lower volatility in developed markets, like in the US and Europe.”
