Increasing the amount of women on the boards of companies has seen profits slump by 12 per cent because they ‘take fewer risks’, study claims
・Increasing the number of women directors leads to a 12.3 per cent drop in profits
・Research has found that the increase meant that the boards took ‘fewer risks’
・The lower risk might positively affect firms’ long-term success and survival
・They also found more women entering boards meant level of education went up
To slump (verb)
Cambridge Dictionary によると ” (of prices, values, or sales) to fall suddenly: “という風に記載されていますね。
Profits slumped to under $250 million.
The value of property has slumped.
Car sales have slumped dramatically over the past year.
She slumped to the floor in a faint.
An increase from one to two female members on a board reduces that firm’s profits by 12.3 per cent, a study has claimed.
Researchers from Norway, Germany and the US examined the impact of the increased number of female executives on company performance in Norway.
A law was brought in for publicly listed companies to have 40 per cent women on boards in 2003.
Using post-2003 data, they found that increasing the number of women meant that they took ‘fewer risks’, which they say could attribute to the fall in profits.
Norwegian firms after this point scored lower in terms of accounting-based performance and were characterised by fewer risks.
But, they said, the lower risk might positively affect firms’ long-term success and survival.
Macmillan Dictionary によると ” after, or later than: used with many nouns, verbs, or adjectives “という風に記載されていますね。
a post-impressionist painting
in terms of (phrase)
Macmillan Dictionary によると ” used for saying which aspects of something you are considering or including “という風に記載されていますね。
The savings, both in terms of time and money, could be considerable.
We try to do what is best for our customers in terms of the quality of our products.
To characterize (verb)
Macmillan Dictionaryによると ” to describe someone or something as a particular type of person or thing “という風に記載されていますね。
The military is usually characterized as being very conservative.
In her essay, she characterizes the whole era as a period of radical change.
The research, published in the Leadership Quarterly, analysed information from databases on company leaders and financial statements.
The findings revealed that the use of a quota is successful in significantly increasing female representation on executive boards.
After implementation of the quota, directors’ average education level rose.
‘We observe a negative association between female board representation and board directors’ age and experience, but a positive association with directors’ education,’ they wrote.
They used a ‘difference-in-differences’ approach to study the effects of women directors on firm performance in Norway.
They used firms from Finland, Sweden, and Denmark as control groups, which have no laws requiring female directors.
They used publicly available data such as average tenure, average age, nationality mix, and average amount of educational above-bachelor degrees.
Difference-in-differences estimates apply in natural experimental settings in which one policy reform, such as the board quota, affects a treated group but not a comparable control group.
They analysed the differences between the treatment and control groups before the quota was introduced and after.
影響を受けているグループをtreatment groupといい、受けていない方を一般的にcontrol groupと言います。
Their result suggested that the cause of effect of the quota had an affect on firm performance.
Cambridge Dictionaryによると ” a fixed, limited amount or number that is officially allowed: “という風に記載されていますね。
The country now has a quota on immigration.
The government is planning to introduce quotas on sugar production.
The class contains the usual quota (= number) of troublemakers.
Cambridge Dictionary によると ” the act of putting a plan into action or of starting to use something: “という風に記載されていますね。
The full implementation of the system will take some time.
Macmillan Dictionary によると ” a connection between two things “という風に記載されていますね。
Some studies show a strong association between pesticide use and certain diseases.
Smoking has a close association with lung cancer.
control group (noun)
Cambridge Dictionary によると ” a group of people who are used for comparing another group to in a test or experiment: “という風に記載されていますね。
The larger the control group sample is, the more reliable and repeatable the results of the promotion will be.
Cambridge Dictionaryによると ” the right to remain permanently in a job: “という風に記載されていますね。
She is one of the few people in the English Department who has tenure.
professors (= those likely to get tenure) who don’t publish enough work may not be offered tenure.
bachelor’s degree (noun)
Macmillan Dictionary によると ” a first university degree. A degree that you can study for after your bachelor’s degree is called a master’s degree. “という風に記載されていますね。
To apply (verb)
Macmillan Dictionary によると ” to affect or be relevant to a particular person or thing “という風に記載されていますね。
The discount no longer applies to him, because he’s over eighteen.
They suggest that this is because the increase in female director and their aversion to risk could be a factor in profit loss.
‘The coefficients are also significant in economic terms. An increase from one to two female board members on a board with four directors reduces that firm’s operating income to assets by 12 per cent,’ the authors, led by Philip Yang, wrote.
‘Our results imply a negative effect of the reform on firm risk.
‘Further, we find the quota significantly adversely affects the performance of treated firms and firm risk is significantly reduced.
With regard to firm performance, they found ‘clear evidence’ that firm performance was affected.
Post-2003, they found a ‘significant’ negative effect on profits, as measured by both return on assets and operating income divided by assets.
Macmillan Dictionary によると ” a strong feeling that you dislike someone or something “という風に記載されていますね。
I felt an instant aversion to his parents.
She has a deep aversion to getting up early.
Cambridge Dictionary によると ” a value, in mathematics, that appears in front of and multiplies another value: “という風に記載されていますね。
In 2x + 4y = 7, 2 is the coefficient of x.
Cambridge Dictionary によると ” in a way that is harmful or likely to cause problems: “という風に記載されていますね。
Cancellations and delays may continue to adversely affect the airline’s financial performance.
最後に、内容が理解でき、新しい単語も知ることができたら、必ずCambridge Dictionaryか、Macmillan Dictionaryで例文を読むようにしてください。そして一番シンプルで、自分が日常使いしときやすそうなもをノートやスマホに書き溜めておいてください。そしてこれを移動中の時などに声に出して覚えることが本当に大事です！（電車では難しいので、僕はよく歩きますw）