Fortune reports on a recent study by the Peterson Institute that found significant correlation between women in leadership roles and company profitability.

The study reveals that companies with at least 30% female leadership experienced on average 6% higher net profit  margins than companies with no female executives.  

Marcus Noland, director of studies at the Peterson Institute, proposed two explanations for this correlation:  “The first is that there is evidence that the presence of women contributes to functional or skill diversity among the leadership group enabling top management to more effectively monitor staff performance. The other is discrimination: If some firms discriminate against talented, hardworking, effective women, then they will be outperformed by rivals that don’t discriminate.”

Read more about the study’s findings here