Survey of 1,524 directors of 844 companies: Shares of companies with women directors jump 0.53 percent above normal

The country's corporate sector has a low number of women directors and CEOs, but stocks of companies that have appointed women directors returned 0.53% above average. The Economic Policy Research Wing of the National Stock Exchange (NSE) came to this conclusion based on a study of 1524 directors employed in 844 companies.

The special thing is that this trust of the investors got to the same companies where women directors were appointed on the basis of merit. For companies that did not appoint women directors on merit, returns remained normal. According to the report, the normal return was so called because it was higher than the return that the company gives to investors based on its performance under normal circumstances. On the other hand, there was no such unusual reaction to the appointment of a male director.

This means that investors believe that having the right women on board creates a positive climate for the company's operations. This makes the management of the company board more transparent. At the same time, gender differences in companies are reduced. Investors' reaction to companies that have inducted women on boards linked to promoters has not been as positive as it is believed that these appointments are made only for catering.

The number of women directors in Indian companies is less compared to the rest of the world According to an analysis by the Daylight Global Board Room Program, 23.3% of 18,000 companies in 50 countries around the world have female directors. 400 companies are Indian in it. Only 18.3% of these companies have women directors. However, the situation is improving. In 2018, 13.8% of companies had women directors. In 2021, this number increased to 17.1%.

Women investing in our stock market increased almost 7 times in 10 years According to the National Stock Exchange report, there are 10 crore investors in the stock market, of which 2.2 crore or 22% are women investors. The number of women investing in the stock market has increased 6.8 times in 10 years. 69% of women investors are below 40 years of age.