Companies with diverse boards ‘have higher share prices’

<p>Having a diverse board can help a firm to a larger share price.</p>

A new report has claimed companies that have a diverse board are more likely to have a higher share price than those firms that do not.

In the 2013 Eversheds Board Report, over 500 top businesses in Europe, the US, Asia-Pacific, the Middle East and Brazil were analysed between 2011 and 2012.

Chairman of the firm John Heaps stated boards have been subject to greater scrutiny since the first Eversheds Board Report was published in 2011.

It was pointed out in the report that the trend seems to be "to have fewer executives on a board, but companies with better share price performance have a higher ratio of executives to non-executives than the regional norm".

Mr Heaps added the organisation is confident that its latest data will provide a valuable contribution to the debate on what makes for good corporate governance in boardrooms.

Bookmaker William Hill recently saw its share price rise on the back of the news its financial results for the first quarter of the year showed an eight per cent rise in profits.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.