Published: Thu, September 29, 2016
Economy | By Melissa Porter

'No of stressed corporates on the rise'

'No of stressed corporates on the rise'

Natella said that data showed a strong correlation between the gender diversity within a company and its performance.

"We find clear evidence that companies with a higher participation of women in decision-making roles continue to generate higher returns on equity, while running more conservative balance sheets", Credit Suisse's chairman Urs Rohner, and Iris Bohnet, a public policy professor at Harvard University and Credit Suisse board member, wrote.

The Credit Suisse Research Institute has mapped 27,000 senior managers at over 3,000 largest companies globally.

"Where women account for the majority in the top management, the businesses show superior sales growth, high cash flow returns on investments and lower leverage", it says. The report debunked the Queen Bee syndrome, which argues that women who have made it to senior positions actively seek to exclude other women from promotions into top management.

It also found that while women were more represented in senior management than two years earlier, some sectors such as energy, materials, industrials and technology still lagged significantly behind.

The company's bi-annual CS Gender 3000: Women in Senior Management report said gender diversity in Indian companies at the uppermost levels has equalled the global average of 14.7%, according to PTI. In 2016, the global average of diversity in management was 13.8%-with 16% in the U.S. and 17.2% in China.

"Management manages companies, while boards supervise them".

According to the latest study by Credit Suisse, 23.8% of management positions in Singapore are taken by women.

"The greater the number of women, the better the results", it said.

"I know the difference a balanced [board] room makes, and the difference is palpable", she said. "You do get people asking questions from different perspectives". The share of "chronically stressed" companies - those with interest coverage (IC) ratio of less than one in the past four of eight quarters - also increased to 33.5 per cent, compared with 32 per cent in the March quarter.

Stock pickers should spend more time looking at management diversity.

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