Women independent directors add to companies' financial performance: NUS study

Having one woman independent director - vs having none - also raises a company's corporate governance score, study finds

Published Fri, Jun 29, 2018 · 09:50 PM

Singapore

WOMEN independent directors have a direct positive effect on the financial performance of companies, a study conducted by the National University of Singapore (NUS) Business School's Centre for Governance, Institutions and Organisations (CGIO) has concluded.

If the average number of woman independent directors on boards goes up by just one, the company's financial performance - as measured by Tobin's Q ratio of market value to book value - would rise by 11.8 per cent.

The Q Ratio, representing a way to value a company, links the market value of a firm to the replacement…

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