Surprisingly, despite these proven advantages, a mere 7% of companies worldwide are currently run by women – a figure that has only increased by 1% since 2023.
Even worse, studies conducted at esteemed institutions like Northwestern University and elsewhere reveal a troubling trend: when a female CEO takes the helm, the market often responds negatively, causing share prices to plummet by 2-3%.
The question remains: why?
Why are women, who have demonstrated their effectiveness as business leaders, still vastly underrepresented in corporate leadership? And why do investors retreat from companies appointing female leaders?
The answer boils down to one word: bias.
Researchers agree that bias against women is the reason why so few companies are run by women, and why investors sell their shares of women-led companies. This bias not only defies financial logic but also deprives society and the world of valuable contributions:
- This bias makes no financial sense. Both investors and businesses (should) care more about their potential profits than the gender of the person leading the companies they invest in. That’s part of their fiduciary responsibility to their shareholders.
- By undervaluing female leadership, society misses out. Investing in women and closing the gender gap would raise GDP per capita by 20%, according to UN Women. Harnessing the economic power of women isn’t just a nice thing to do – it’s essential for progress.
Asian Woman Leadership 