IFC Study: Gender-Diverse Boards Improve Profitability for Companies in Kazakhstan

​Almaty, Kazakhstan, June 3, 2022—Having more women on boards improves the performance and profitability of companies in Kazakhstan while bringing a host of other benefits, according to a new study by IFC.

Conducted by IFC and the Applied Economics Research Centre of Kazakhstan between 2017 and 2019, the study examined nearly 80 percent of the country's joint-stock companies on the impact of more women corporate leaders. It found a significant positive correlation between board gender diversity—defined as 30 percent female representation on boards—and financial performance across companies of all sizes, in terms of return on equity and return on assets.

Companies with at least one woman on their boards also had higher than average returns than those with all-male boards. In addition, an online survey found most respondents believed having women on boards had other positive impacts, including better staff development, improved company reputation, and enhanced corporate governance processes.

While Kazakhstan has made significant progress in promoting gender equality and women's rights, gender inequalities persist, from higher poverty among women, to a higher female unemployment rate, societal biases, and the wage gap. In 2020, Kazakhstan's female labor force participation rate was 60.3 percent, compared to the male labor participation rate of 72.1 percent.

According to IFC's study, women occupied approximately 17 percent of all board seats in Kazakhstan between 2017 and 2019. Fifty-four percent of joint-stock companies had at least one woman on their boards, meaning that 46 percent still had all-male boards.

Cassandra Colbert, IFC Senior Manager for Central Asia, said: "Gender diversity can help improve the decision-making process, foster long-term sustainability, and boost returns for companies, as our study shows. But achieving it will require the collaboration of all stakeholders, from regulators and stock exchanges, to investors, consumers, and the companies themselves. I hope this study will inspire them to join us in this critical task to create fairer, more inclusive businesses."

The report's findings build on studies conducted worldwide, including research by Deloitte and McKinsey & Company, which indicated a positive correlation between gender diversity and financial and non-financial performance.

IFC is committed to closing the gender gap in emerging markets companies as part of its mission to create markets and opportunities. The report is part of IFC's ongoing efforts to highlight the value of increasing women's participation on company boards.
 
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.

For more information about the Applied Economics Research Centre of Kazakhstan (AERC), please visit https://aerc.org.kz/

Stay Connected
www.facebook.com/IFCwbg
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts
www.ifc.org/SocialMediaIndex
www.instagram.com\ifc_org
www.linkedin.com/company/global-infrastructure-facility/