The representation of women on corporate boards is linked to companies' credit ratings, says ratings agency Moody's.
Companies rated triple-A — the best possible credit rating — by the agency have the most gender-diverse boards "with women accounting for an average of 28% of their corporate directors."
Companies with lesser ratings also had fewer women on their boards. Nevertheless, the pattern suggested a correlation in the data, but not causation, Moody's said.
"Higher-rated companies also tend to have more women occupying C-suite executive positions. Nearly 25% of executives at Aaa-rated companies are women, versus around 10% for Ca-rated companies.
Regulations that mandate a minimum gender split on boards could, meanwhile, make things worse for companies, as it would require many to turn over directors, which could lead to credit risk in the short-term.
That said, Moody's also assesses companies' governance, and one of the five equally weighted risk categories it considers for the score is board oversight and effectiveness. "A board with less than 30% gender diversity is one indicator among many that strays from Moody's global standards," the agency said.