Firms with More Women in Charge Are Faring the Economic Crisis Better - Building Gender Balanced Business

• We’ve noted before where Michel Ferrary has proved that companies with more women in management have survived the financial crisis better.

• And as markets around the world keep tumbling, the proof is more absolute. Updating his data from early on in the crisis, Ferrary proves that if anything, the evidence is only stronger.

• Writing in The Financial Times, Ferrary notes that the only large French company to record a share price gain in 2008 was Hermès — whose management is 55% women, the second largest share among French blue chips.

• In general, companies with a management at least 38% women suffered less than the CAC 40 benchmark index (though no others than Hermès posted a gain in share price, but then who did in 2008?)

• By contrast, the largest declines were recorded by companies with at least 75% male management.

• This is because during crises, investors reward companies that are stable and avoid high risks. “A larger proportion of female managers appears to balance the risk-taking behaviour of their male colleagues.” Ferrary writes. “Gender diversity supports managerial efficiency by creating a more diverse culture and favouring the exploration of different business opportunities.”

• Ferrary writes: “Feminisation of management seems to protect against financial crisis. … Increasing the number of female managers is both an issue of corporate social responsibility and important for business performance”

The Financial Times column