"We found strong evidence that board diversity significantly curbs excessive risk taking. We find that firms with more diverse boards are more risk averse, spending less on capital expenditure, R&D, and acquisitions, and exhibiting lower volatilities of stock returns than those with less diverse boards."
The latest study, according to Mainstreet, considered a range of dissimilarity well beyond gender, including race, age, experience, tenure and expertise. Risk was defined by examining a company's capital expenditures, research and development expenses, acquisition spending, the volatility of its stock returns, as well as the variability of accounting results.
Clearly, bringing more diversity to the corporate world reaps intangible benefits as well as financial profits, making it indeed a good business idea.