Women-Led Companies Perform Three Times Better Than the S&P 500

March 17th, 2015

Via: Fortune:

Boston-based Quantopian looked at how well Fortune 1000 companies led by women performed compared to the S&P 500 over a 12-year period.

You’ve heard that companies with women executives at the helm tend to perform better than those led by men— and a new study furthers that claim, finding that women CEOs in the Fortune 1000 drive three times the returns as S&P 500 enterprises run predominantly by men.

…

Here’s how the simulation works: Rubin invests a hypothetical $100,000 in the companies that had women CEOs between Jan. 1, 2002 and Dec. 31, 2014 and another $100,000 in the S&P 500. Rubin buys a company’s stock when the woman becomes CEO, and holds it through the CEO’s tenure.

According to the algorithm, the women CEO fund would end up being worth $448,158, or a return of 348%, while the S&P 500 investment would have risen to $222,306, or a return of 122 %. The results are even on the conservative side for the performance of the women CEOs, since dividends weren’t reinvested automatically as they were with the S&P 500.

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One Response to “Women-Led Companies Perform Three Times Better Than the S&P 500”

  1. tal says:
    March 18, 2015 at 5:54 am

    I suppose Carly Fiorina is an exception to the ‘rule’:

    Portfolio’s Worst American CEOs of All Time
    http://www.cnbc.com/id/30502091/page/3

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