Firms with more gender diversity among managers show lower share-price swings, BoA study shows
Hong Kong — Investing in companies that have more women in leadership roles can help lower the volatility of your portfolio, according to Bank of America (BoA). Firms with more gender diversity among managers have consistently seen lower share-price swings and reduced earnings volatility, the bank said in a March 7 report. They also boast of higher returns on equity, it said. Analysing the period from 2010 to 2016, strategists including Savita Subramanian found that firms in the S&P 500 with women making up at least 25% of their executives posted higher median returns on equity the following year. This suggests gender diversity may drive returns, they said. The findings were particularly strong for technology companies, according to the note. "While we did not find better price performance trends for companies with high ESG scores on gender diversity metrics, we did find these metrics to be effective signals of future price and earnings risk, as well as a signal of future returns-on...
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