Want to improve the company’s performance? Get more women on the boardroom


Jun 21, 2022

The presence of women on corporate boards leads to better financial results, shows a new CSH study

 

A recent study out of the Complexity Science Hub Vienna found that companies with female board members tend to perform better. The analysis examined the relationship between female board appointments and corporations’ financial performance, based on data from about 4.000 Japanese firms collected between 2004 and 2013.

 

“This is one of the first large-scale analyses of female board members in Japan, and it’s one of the largest samples ever analyzed for developed economies,” says CSH researcher Matthias Raddant, the study’s lead author.

 

Matthias and his colleagues studied the evolution of a group of female board members and their professional networks. “We assessed which companies appoint them and we looked into what determines the slow but steady increase in female board members during that period,” explains Matthias.

 

Slight increase

 

Women made up approximately 2 percent of Japanese boards, with a slight increase over the study’s 10-year span. “Even in 2022, the share of female board members in Japan is only 8 percent,” adds Matthias. These numbers are far below those in western economies. As of 2022, 29 percent of corporate board seats were held by women at North American and European companies, according to Moody’s Investors Service.

 

“Our study shows that even if the number of female board members in Japan is still low, they have started to change their positions in the executives networks. Relatively many female board members have multiple mandates, which made them become more central,” points out Matthias.

 

Financial results

 

When it comes to the profitability of an organization, firms with at least one female board member do perform better than those without any female board members, according to the analysis.

 

“This result is only significant in the last three years. However, since some previous studies have also found cases where companies with female board members were less profitable than the average, this is still a good result, since our sample size is very large and we can basically rule out negative influences from female board members,” explains Matthias.

 

As the effects and mechanisms of more gender diversity on board composition are not entirely clear yet, this finding is surprising, states Matthias. But he underlines that the discovery might be related to the quality of corporate governance. “Companies that have good governance are more profitable and might also be better at facilitating the hiring of female board members.”

 

“Birds of a feather stick together”

 

Furthermore, the study reveals that women tend to connect with each other and support one another. It’s the concept of homophily, or the idea that “birds of a feather stick together,” or that people are more likely to interact when they are of similar backgrounds. The data showed that enterprises with ties to other companies with female board members were also more likely to appoint female board members.

 

Dataset

 

The scientists examined information about the composition of corporate boards, including age, gender, and if they were outside board members or auditors. Financial information was also collected. “In particular, we used information on market value, income, total assets, business sector, largest shareholders, and shareholder composition,” details Matthias, who is also a research fellow at University for Continuing Education Krems.

 

The article “Interdependencies of female board member appointments,” written by Matthias Raddant and Hiroshi Takahashi, was published in the journal International Review of Financial Analysis.

 

 


News

Feb 2, 2023

Cybercrime is increasing rapidly, new methods are ready

Publication

V.D.P. Servedio, M. R. Ferreira, N. Reisz, R. Costas, S. Thurner

Scale-free growth in regional scientific capacity building explains long-term scientific dominance

Chaos, Solitons & Fractals 167 (2023) 113020

Event

CSH Talk by José Moran: "Dynamics of (auto)correlated firms"


Feb 24, 2023 | 15:0016:00

Complexity Science Hub Vienna

Research News

Jan 24, 2023

Berlin could produce more than 80% of its fresh vegetables locally

Publication

N. Pontika, T. Klebel, A. Correia, H. Metzler, P. Knoth, T. Ross-Hellauer

Indicators of research quality, quantity, openness and responsibility in institutional review, promotion and tenure policies across seven countries

Quantitative Science Studies 1-49

Press

Warum in der Welt doch Chaos herrscht [feat.J.Doyne Farmer]


Wiener Zeitung, Jan 28, 2023

Press

Studie: Berlin könnte erheblichen Teil seines Gemüsebedarfs [feat.Diego Rybski]


Stern, Jan 27, 2023

Event

Workshop für Journalist:innen: "Put a Piece of Science in your Story"


Mar 03, 2023 | 15:0017:00

Complexity Science Hub Vienna

Press

Staatsanwälte jagen mit Datenforschern Cyberkriminelle [feat.Bernhard Haslhofer]


Salzburger Nachrichten, Jan 27, 2023

Publication

W. Schueller, J. Wachs, V. D. P. Servedio, S. Thurner, V. Loreto

Evolving collaboration, dependencies, and use in the Rust Open Source Software ecosystem

Scientific Data 9 (2022) 703

Event

CSH Talk by Ambra Amico: "Structure and resilience of large-scale distribution networks: a complex system perspective to supply-chains"


Mar 03, 2023 | 15:0016:00

Complexity Science Hub Vienna

Spotlight

Jan 20, 2023

CSH-STATEMENT | New methods for investigating child pornography

News

Feb 2, 2023

Cybercrime is increasing rapidly, new methods are ready

Publication

V.D.P. Servedio, M. R. Ferreira, N. Reisz, R. Costas, S. Thurner

Scale-free growth in regional scientific capacity building explains long-term scientific dominance

Chaos, Solitons & Fractals 167 (2023) 113020

Event

CSH Talk by José Moran: "Dynamics of (auto)correlated firms"


Feb 24, 2023 | 15:0016:00

Complexity Science Hub Vienna

Research News

Jan 24, 2023

Berlin could produce more than 80% of its fresh vegetables locally

Publication

N. Pontika, T. Klebel, A. Correia, H. Metzler, P. Knoth, T. Ross-Hellauer

Indicators of research quality, quantity, openness and responsibility in institutional review, promotion and tenure policies across seven countries

Quantitative Science Studies 1-49

Press

Warum in der Welt doch Chaos herrscht [feat.J.Doyne Farmer]


Wiener Zeitung, Jan 28, 2023

Press

Studie: Berlin könnte erheblichen Teil seines Gemüsebedarfs [feat.Diego Rybski]


Stern, Jan 27, 2023

Event

Workshop für Journalist:innen: "Put a Piece of Science in your Story"


Mar 03, 2023 | 15:0017:00

Complexity Science Hub Vienna

Press

Staatsanwälte jagen mit Datenforschern Cyberkriminelle [feat.Bernhard Haslhofer]


Salzburger Nachrichten, Jan 27, 2023

Publication

W. Schueller, J. Wachs, V. D. P. Servedio, S. Thurner, V. Loreto

Evolving collaboration, dependencies, and use in the Rust Open Source Software ecosystem

Scientific Data 9 (2022) 703

Event

CSH Talk by Ambra Amico: "Structure and resilience of large-scale distribution networks: a complex system perspective to supply-chains"


Mar 03, 2023 | 15:0016:00

Complexity Science Hub Vienna

Spotlight

Jan 20, 2023

CSH-STATEMENT | New methods for investigating child pornography

News

Feb 2, 2023

Cybercrime is increasing rapidly, new methods are ready

Research News

Jan 24, 2023

Berlin could produce more than 80% of its fresh vegetables locally

Spotlight

Jan 20, 2023

CSH-STATEMENT | New methods for investigating child pornography

Research News

Jan 23, 2023

Predicting human group sizes with physics

Research News

Jan 19, 2023

Simply explained: Decentralized Finance, Blockchains and smart contracts

News

Jan 16, 2023

CSH Winter School is off to a great start

Spotlight

Jan 11, 2023

Explore the world's supply chains

Research News

Jan 3, 2023

Diabetes mellitus: Women are at higher risk of venous thromboembolism than men

Research News

Dec 28, 2022

NO CRITICAL MASS OF SCIENTISTS: TRY TO BE A PIONEER

Research News

Dec 19, 2022

Of mice and men

Research News

Dec 14, 2022

Tweets can prevent suicides

Press

Algorithmen lernen zu diskriminieren [feat. Fariba Karimi]


Die Presse, Jan 28, 2023

Press

Warum in der Welt doch Chaos herrscht [feat.J.Doyne Farmer]


Wiener Zeitung, Jan 28, 2023

Press

Studie: Berlin könnte erheblichen Teil seines Gemüsebedarfs [feat.Diego Rybski]


Stern, Jan 27, 2023

Press

Staatsanwälte jagen mit Datenforschern Cyberkriminelle [feat.Bernhard Haslhofer]


Salzburger Nachrichten, Jan 27, 2023

Press

Totes Netz [feat.Christian Diem]


Ö1 Dimensionen, Jan 24, 2023

Press

Arzneimittelengpass in Österreich [feat.Peter Klimek]


Ö1 / Morgenjournal, Jan 24, 2023

Press

Stoppt den Kindesmissbrauch [feat.Bernhard Haslhofer]


ORF 2 / Thema, Jan 24, 2023

Press

Menschen verhalten sich wie Teilchen mit Spin [feat.Stefan Thurner, Jan Korbel]


APA-Science, Jan 23, 2023

Press

Wie der Kreml geflohene Russen drangsaliert [feat.Johannes Wachs]


Handelsblatt, Jan 20, 2023

Press

So machen wir den Markt kaputt [feat.Stefan Thurner]


Die Presse, Jan 8, 2023

Publication

V.D.P. Servedio, M. R. Ferreira, N. Reisz, R. Costas, S. Thurner

Scale-free growth in regional scientific capacity building explains long-term scientific dominance

Chaos, Solitons & Fractals 167 (2023) 113020

Publication

M. Leutner, M. Butylina, C. Matzhold, et al.

Simvastatin therapy in higher dosages deteriorates bone quality: Consistent evidence from population-wide patient data and interventional mouse studies

Biomedicine & Pharmacotherapy 158 (2023) 114089

Publication

W. Schueller, J. Wachs, V. D. P. Servedio, S. Thurner, V. Loreto

Evolving collaboration, dependencies, and use in the Rust Open Source Software ecosystem

Scientific Data 9 (2022) 703

Publication

N. Pontika, T. Klebel, A. Correia, H. Metzler, P. Knoth, T. Ross-Hellauer

Indicators of research quality, quantity, openness and responsibility in institutional review, promotion and tenure policies across seven countries

Quantitative Science Studies 1-49

Publication

H. Kong, S. Martin-Gutierrez, F. Karimi

Influence of the first-mover advantage on the gender disparities in physics citations

Communications Physics 5 (243) (2022)

Publication

A. Pichler, M. Pangallo, M. del Rio-Chanona, F. Lafond, D. Farmer

Forecasting the propagation of pandemic shocks with a dynamic input-output model

Journal of Economic Dynamics and Control (2022) 104527

Publication

J. Lasser, S. Taofeek Aroyehun, et al.

Social media sharing of low quality news sources by political elites

PNAS Nexus (2022) pgac186

Publication

R. Prieto Curiel, A. Schumann, I. Heo, P. Heinrigs

Detecting cities with high intermediacy in the African urban network

Computers, Environment and Urban Systems 98 (2022) 101869

Publication

T. Reisch, G. Heiler, C. Diem, P. Klimek, S. Thurner

Monitoring supply networks from mobile phone data for estimating the systemic risk of an economy

Scientific Reports 12 (13347) (2022)

Publication

G. De Marzo, F. Pandolfelli, V.D.P. Servedio

Modeling innovation in the cryptocurrency ecosystem

Scientific Reports 12 (12942) (2022)

Publication

A. Nerpel, et al.

SARS-ANI: a global open access dataset of reported SARS-CoV-2 events in animals

Scientific Data 9 (438) (2022)

Publication

M. Kaleta, J. Lasser, E. Dervic, et al.

Stress-testing the resilience of the Austrian healthcare system using agent-based simulation

Nature Communications 13 (4259) (2022)

Event

CSH Talk by José Moran: "Dynamics of (auto)correlated firms"


Feb 24, 2023 | 15:0016:00

Complexity Science Hub Vienna

Event

Workshop für Journalist:innen: "Put a Piece of Science in your Story"


Mar 03, 2023 | 15:0017:00

Complexity Science Hub Vienna

Event

CSH Talk by Ambra Amico: "Structure and resilience of large-scale distribution networks: a complex system perspective to supply-chains"


Mar 03, 2023 | 15:0016:00

Complexity Science Hub Vienna

Event

CSH Talk by Gašper Tkačik: "Statistical analysis and optimality of biological systems"


Feb 17, 2023 | 14:0015:00

Complexity Science Hub Vienna

Event

CSH Talk by Nicolò Vallarano:"An Agent-based model of Ethereum Proof-of-Stake consensus"


Feb 10, 2023 | 15:0016:00

Complexity Science Hub Vienna

Event

CSH Workshop: "Monitoring Social Stress: a data-driven approach to understanding 'polycrisis”


Feb 07, 2023Feb 08, 2023

Complexity Science Hub Vienna