A team of researchers led by Oliver Rui of the China Europe International Business School has found that fraud is less likely to occur when women have more of a presence on corporate executive boards.
Along with Douglas Cumming of York University’s Schulich School of Business and Tak Yan Leung from the Open University of Hong Kong, Rui found that the “optimal percentage of women on boards is 50 percent.”
Clearly we support the notion of more female representation in the executive tier of the corporate world.
Researchers found their way to the same conclusion after closely examining 1,422 fraud investigations that took place between 2001 and 2010.
Upon further review of those cases, those involved in the study found that boards populated mostly by men were more likely to participate in fraudulent activity.
“Women are more effective in mitigating both the presence and severity of fraud in male-dominated industries, which again supports the notion of diversity,” the study’s findings additionally stated, according to The New York Times.
Looks like they found one more reason for people to broaden their horizons in regards to what a corporate executive looks like.