As if you needed more proof that i-banking is a male-dominated business, there’s a paper that studies the effects of having more women on the executive board.
It concludes that the effects are overall good, at least in terms of M&A, because most acquisitions have a negative affect on the company doing the acquiring.
Specifically, more women on a company’s board results in 1) 4.7% fewer acquisition bids and 2) acquisitions with a lower bid premium.
From the abstract:
Female directors on a corporate board is associated with a reduction in the number of a company’s acquisition bids by 4.7 per cent: women are less acquisitive than men.
Furthermore, using over 450 acquisition bids for which we have data on bidder and target firm characteristics and their board membership, we find that each 10-per cent of female directors on the bidder board is associated with a reduction in the bid premium by 13.3 per cent.
We argue that these results are what we would expect if, as other researchers have shown, women are less overconfident than men.
The subject of the i-banking sausage fest was also the study of a Harvard research paper this year which determined that women don’t fit as well into LBO firms because they don’t play sports as much or use phrases like BSD.