A new study has suggested that female chief executives “significantly improve” the profitability of family-owned companies, particularly when there is a large number of women on the board.
The paper, called Gender Interactions Within the Family Firm, explores the transitions from male to female chief executives of family-owned companies in Italy over the period 2000-2010.
It found that the “female incoming CEOs positively affect corporate profitability as the fraction of female directors increases” – especially in smaller firms.
This means that when women executives operate within a female-dominated environment, they are less reserved and more likely to work better and therefore increase profitability.
According to the research, a “female-friendly corporate culture” means that women are more likely to team up and co-operate to promote a more efficient use of resources, which also boosts profitability.
Overall, the study said that a female-oriented board, together with a female CEO, could improve profitability by 6.5-7.6%.
However, the study suggested that when companies are large or promote a conservative image of women in society, the interactions between female CEOs and directors is less profitable.
The study also argued, “The profitability effect of female interactions is stronger for female directors that are not affiliated to the controlling family, who are typically more likely to be appointed following a meritocratic selection rather than based on family ties.
“This suggestion is reinforced since we find that female interactions are less effective in areas where traditional family values dominate.”
Recent figures revealed that the percentage of women on FTSE 100 company boards hit 27% for the first time – but only four of these companies have female CEOs.
Like our Facebook Page
Strange Ways the Sporting World Impacts the Environment
The Future of Cryptocurrency is Eco-Friendlier than the Present
Why Bill Gates Is Wrong on the Climate Impact of Bitcoin
Everything You Need to Know to Create an Eco-Friendly Nursery
4 Environmental Benefits of Using A Buckwheat Pillow
Eco-Friendly Ways to Dispose of The Office Furniture!
7 Huge Advantages of Using Solar Power at Home
5 Important Changes to Become An Eco-Friendly Nicotine User
4 Great Ways to be a Committed Eco-Tourist While Flying
7 Basic Types of Forex Charts Ethical Investors Must Understand
How to Make Your Ecommerce Business More Eco-Friendly?
How Can Social Media Help In Promoting Sustainable Lifestyle?
Luxury Development for The Ultra-Rich Causing Climate Change Conundrum in Barbuda
How Does Bitcoin Mining Work and is it Eco-Friendly?
Is Gen Z Ahead of Millennials in Terms of Eco-Investing?
Four Reasons Why Buying Used Cars Is the Way to Go Green
There is no Planet B: The Growing Importance of ESG
Wonderful Environmental Monitoring Tips to Keep Indoor Air Clean
The Tremendous Benefits of Investing in Energy-Efficient Windows
4 Morning Productivity Tips for Green Entrepreneurs that Are Night Owls
- Features10 months ago
Eco-Friendly Interior Design Is Easier Than You Might Think
- Features7 months ago
Eco-Friendly Hacks To Create A Durable Shop For Your Home
- Features8 months ago
5 Simple Ways To Create A Greener And Healthier Home
- Environment11 months ago
The Benefits Of Sustainable Agriculture For Farmers