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Female CEOs run companies with lower profit margins

Published söndag 9 mars 2014 kl 14.54

Companies headed by a female CEO have a lower profit margin on average than companies headed by a male CEO, according to a report by the national small business association Företagarna.

The business association Företagarna has reviewed 125,000 Swedish business and found that companies with a female CEO had a profit margin of 7 percent on average, whereas the same number for male CEOs was 8.4 percent.

The association's CEO Elisabeth Thand Ringqvist says to Swedish Radio that the difference may show that women take smaller risks when it comes to businesses.

"Women seem to be more hesitant to put a higher price on their products or services. The difference may also reflect how different men and women are treated in business negotations," Thand Ringqvist says.

A lower profit margin means that a company makes less money on each sale than on with a high profit margin, but doesn't necessarily mean that the company has a lower income. A high profit margin is often associated with higher risks.

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