Study: companies managed by women more profitable than those run by men

HELSINGIN SANOMAT

Companies managed by women are on average ten per cent more profitable than those with a man as CEO. A study organised by the Finnish Business and Policy Forum EVA finds a clear correlation between women in management and profitability, which cannot be explained by differentiation of companies or fields of business. A similar effect appears to exist with women on boards of directors. The study, conducted by researcher Annu Kotiranta, Professor Anne Kovalainen, and head of research Petri Rouvinen, is the first investigation into the profitability of companies in Finland run by women. The measure that was used is the return on invested capital.

The researchers say that it is likely that women who attain leading corporate positions have had to overcome more hurdles, and are therefore more competent than average. "They either have more drive, or a desire to show", Kovalainen says. Teija Andersen, CEO of Fazer Amica, was excited at the finding. "It sounds awfully great." She adds that everyday experience has reinforced the impression of competence among women executives. For instance, she says that it is rare that women would show up for a job interview with a salary request that would be disproportionately high with respect to their knowledge and professional skill. Andersen feels it is only a matter of time for big changes to set in...........