Diversity in board of directors , lower risk

 MARCH 25, 2013

Research Fact 

Startups with Female Directors Have Better Chance of Survival ! 

Newly incorporated companies with at least  one female director have a 27% lower risk of becoming insolvent than comparable firms with all-male boards, says a team led by Nick Wilson of Leeds University Business School in the UK. 

Law of diminishing returns ? 

The effect decreases as the number of female directors rises, suggesting that what matters is DIVERSITY  rather than the specific number of women on the board. 

Reason ? 

Past research shows that groups with greater gender diversity generate more-innovative thinking in problem solving.

Source: The survival of newly-incorporated companies and founding director characteristics

Courtesy : Harvard Business Review