What is the relationship between the level of gender diversity in leadership teams

and organizational performance indicators, such as profitability or innovation

metrics?
The relationship between gender diversity in leadership teams and organizational
performance indicators, such as profitability or innovation metrics, has been
extensively researched. Women now occupying important positions that were
previously unavailable, understanding this relationship is crucial for organizations
striving for a diverse and inclusive work environment while maximizing
performance potential.
Gender diversity in leadership teams significantly influences organizational
dynamics, decision-making processes, and overall performance. Exploring the
relationship between gender diversity and key performance indicators, such as
profitability and innovation metrics, is essential.
This study aims to investigate the relationship between gender diversity in
leadership teams and organizational performance indicators, focusing specifically
on profitability and innovation metrics. By providing valuable insights, the
research aims to guide organizations in cultivating diverse and high-performing
leadership teams, contributing to long-term success in a competitive and diverse
business landscape.
Gender Diversity Data Set:
Variables:
Leadership Team: Information on the composition of leadership teams in
organizations, including the gender of each team member. This may include data
such as the CEO, board of directors, or top-level executives.
Gender: Categorization of each leadership team member as male or female.
Expected Sample Size: more than 1,000 companies covering 12 countries.
Organizational Performance Data Set:
Variables:
Organizational Performance Indicators: Variables that reflect the performance of
organizations, such as profitability or innovation metrics. This could include
financial data (e.g., revenue, net income) or innovation-related metrics (e.g.,
number of patents filed, new product launches).
Time Period: quarterly.
Expected Sample Size: more than 1,000 companies covering 12 countries.
Descriptive statistical analyses:

p-value = P(TS ts | H 0 is true) = cdf(ts)

p-value at 2014 was <0.1
p-value at 2017 became <0.1
P-value <0.05.
VARIABLE MEAN STANDARD MEDIAN FIRST SECOND NUMBER OF
DEVIATION QUARTILE QUARTILE OBSERVATIONS

GENDER VARIABLES
PERCENTAGE OF WOMEN, MANAGER LEVEL 0.34 0.16 0.30 0.22 0.44 159
PERCENTAGE OF WOMEN, ALL COMPANY 0.40 0.17 0.37 0.26 0.54 177
CONTROL VARIABLES
PERCENTAGE OF WOMEN, BOARD LEVEL 0.36 0.10 0.38 0.30 0.43 184
PERCENTAGE OF WOMEN, EXECUTIVE COMMITTEE 0.16 0.15 0.13 0.00 0.25 184
SIZE OF BOARD 10.91 3.76 11.00 8.00 13.00 184
MARKET CAPITALISATION (LOG OF) 7.64 2.13 8.08 6.03 9.22 184
BETA 0.75 0.37 0.75 0.50 0.96 184
PROFITABILITY (AVERAGE 2016-2018)
NET MARGINS 6.67 12.74 5.08 2.51 9.46 169
EBIT MARGINS 11.67 14.97 9.35 5.56 15.45 162
EBITDA MARGINS 19.03 17.15 14.33 9.46 23.94 162

The findings of the study indicate that companies with gender-diverse teams across
various sectors generally exhibit higher levels of labor productivity compared to
retail firms that have a more homogeneous demographic composition. This
suggests that women have made significant contributions and have actively
participated in the workforce. The presence of diversity in the workplace has a
positive impact on organizational performance, enabling companies to make
progress towards their goals and increase their economic profitability. By
embracing gender diversity, organizations can harness the collective talents,
perspectives, and experiences of individuals, leading to enhanced productivity and
improved financial outcomes.
References:
https://www.mckinsey.com/capabilities/people-and-organizational-performance/
our-insights/delivering-through-diversity
https://hal.science/hal-03280536/document