Diversity in the MAG-City Marketing office has enabled us to be a truly innovative firm. We believe that people with different backgrounds are best when brought together. They make better choices because they have more ideas as a group. A recent study confirmed this belief. It showed that companies with more women on their boards tend to perform better.
The study, performed by researchers from the University of Notre Dame and Singapore Management University, examined 1,500 companies over a 12-year period. In this time, only 10 percent of the board members of the companies were women. However, that small group made a big difference.
We at MAG-City Marketing were not surprised to learn that the companies with more female leaders made more thought-out decisions. Those with at least two women on the board made 18 percent fewer acquisitions, spent 12 percent less on purchasing other companies, and spent nearly $100 million less on acquisitions. Layoffs were also significantly decreased.
Although the study did not directly link this to performance, it did suggest that less acquisition is a positive thing. Other research has shown that mergers and acquisitions are often quite destructive. They tend to bring down shareholder value. As such, being more selective makes sense.
We strongly encourage diversity at MAG-City Marketing. Even a few new voices on a team will lead to very interesting insight. Take a look at your firm and think about whether you could benefit from some fresh thinking.