They also raised. It is not uncommon for a firm to explicitly mention gender when they announce appointments of new board members but of course this only happens if the new board member is a woman. a. management consultants. a. usually on the verge of bankruptcy. b. composed solely of outside directors. New Report: Companies With Diverse Boards Out Performed Their Peers The repurchase at a premium of shares of stock that have been acquired by the aggressor firm in a hostile takeover in exchange for an agreement that the aggressor will no longer target the com-pany for takeover is called This suggests that gender diversity on the board explains about two-tenths of 1% of the variance in company performance. It signals an end, or at least the beginning of an end, to gender exclusivity in firm leadership. It is therefore not much of a leap to assume companies appoint female directors as part of a diversity initiative. c. reduce the risk of total firm failure, reduce their total portfolio risk Similarly, after promising to address board diversity, Skechers explained their decision not to nominate a female director by saying that the firms primary focus is on maximizing shareholder value. In May 2019, the company nominated their first female board member following the enactment a law requiring California companies to have at least one woman on their board. d. outsid e director s ow n significan t equit y i n th e organization . a. ownership concentration. d.requiring that outside directors be truly objective by having no ownership interest in the firm. A recent study, of board composition and financial data on 1,644 public companies in the United States between 1998 and 2011, finds that companies that appoint women to the board are no more profitable than those that do not. A business journal from the Wharton School of the University of Pennsylvania. Diversity advocates often argue that gender-diverse boards make better decisions than all-male boards.