Senior Partnerships Adviser
The study from Bankwest Curtin Economics Centre (BCEC) looks at the link between gender diversity in corporate leadership and the occurrence of fraud in 128 publicly listed Australian companies.
Dr Astghik Mavisakalyan, Senior Research Fellow at BCEC said the study shows that an increase in women’s representation on company boards is associated with a decreased probability of fraud.
“In fact, a 1 percentage point increase in the share of women on boards lowers the probability of fraud by 1.06 percentage points. This is equivalent to a reduction of around 7 per cent in the probability of fraud,” Dr Mavisakalyan said.
Of the 128 companies, 38.5 per cent had a least one female director and only 3.9 per cent had a maximum of two female directors.
Approximately 14 per cent of these companies were identified as having at least one incident of fraudulent behaviour across a five-year period, including theft of company assets, false invoicing and fraudulent use of company credit cards.
For further information on the research visit the BCEC website.
Earlier this year, WGEA and BCEC collaborated on a report using WGEA data to analyse the gender pay gap. The report showed that increasing the share of women on boards from zero to equal representation is associated with a 6.3 percentage point reduction in the gender pay gap for full-time managers and 7.8 percentage point reduction for part-time managers.