Banks with More Women on Their Boards Commit Less Fraud

Barbara Casu of Cass Business School at City University of London and four coresearchers compared data on board and leadership diversity at large European banks against records of fines levied on those banks by the U.S. government since the global financial crisis of 2008. They found that banks with more female directors faced lower and less-frequent fines for misconduct, saving those institutions $7.84 million a year, on average. The conclusion: Banks with more women on their boards commit less fraud.