Businesses with women on their boards achieve better financial performances and shareholder returns, according to a KPMG study of mid-market companies.

Female CEOs delivered a 9% increase in revenue last year, compared with the remaining group-wide average of 0.5%, the research shows.

KPMG examined ASX 300+ companies – those ranked from 300 to 1000 by market capitalisation on the Australian bourse last June, excluding businesses that listed or delisted last year.

“Gender diversity, and also diversity of age, culture, experience and other factors, can help fuel more robust and innovative discussion,” the report says.

“This can lead to stronger governance, improved critical decision-making and a more robust organisational culture.”

On average, ASX 300+ boards have only 9% female board representation, while just 3% have a female CEO.

“Currently there is a small talent pool of female directors with pre-existing experience as a director or executive, which presents a challenge in sourcing, attracting and retaining talent at the director and board level,” the report says.

“Companies need to identify the people who could support their strategy and culture with fresh and relevant experience, then help them to prepare for these senior positions.”