The BofA analysis of returns since 2010 is the latest to suggest diverse leadership can contribute to corporate success. A McKinsey & Co. report noted that companies where at least 30% of executives are women are more likely to outperform compared with those with smaller proportions of women in leadership. Credit Suisse Group AG noted in a 2021 report a “diversity premium,” as gender diverse boards and executive leadership correlated positively with superior corporate and stock performance.
Investing in Asian companies with a higher proportion of female managers leads to benchmark-beating returns, according to a study by BofA Securities.
A basket of the MSCI Asia Pacific Index’s members with the highest proportion of women in management posted average five-year returns that were four percentage points higher than the benchmark, the report found. These stocks also outperformed a portfolio of companies with the fewest women in management by 26 percentage points over the same period, strategists including Girish Nair and Matty Zhao wrote in a report.
