Investors May Prefer Companies With More Women In The Workforce

“You have $1, and you’re thinking about investing it in the stock market. All you know about the company you’re going to invest in is that it’s a tech company with more women on its workforce than the average tech firm.

How much of your dollar do you invest?

In an experiment, researchers found that investors were more likely to bet that a company’s stock price would increase if it had more women on staff than average. That suggests investors see value in gender diversity and that companies that hire more women could see their stock prices rise. Those are among the findings of a new studyby Stanford University, Northwestern University, Dartmouth College and the Hong Kong University of Science and Technology.

The study focused on dozens of companies in the tech and finance industries. And those who participated in the experiment had one thing in common — they all reported they had some kind of managerial experience.”