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Gender quota on corporate boards in Italy: spillover effects and financial performance

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  • Barbara Pistoresi
  • Erica Poma
  • Alberto Rinaldi

Abstract

This paper analyzes the impact of the introduction of mandatory gender quotas for the boards of directors of listed firms and state-participated companies (LP) in Italy. It investigates its effects on firms directly targeted by the new regulation as well as its indirect effects on firms that are not. To this aim, we use difference-in-difference and panel fixed-effects estimations. Our main results are that quotas directly increased female presence on boards of LP companies and produced some “positive spillover effects†, i.e., a higher proportion of women in top executive positions in LP firms and a higher share of women on boards of non-listed firms and non-participated firms (NLNP), even if the latter were not targeted by the law. We also find evidence for a positive impact of higher board gender diversity on firm performance in specific conditions, such as boards of small size and NLNP companies.

Suggested Citation

  • Barbara Pistoresi & Erica Poma & Alberto Rinaldi, 2022. "Gender quota on corporate boards in Italy: spillover effects and financial performance," Department of Economics 0208, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    • Handle: RePEc:mod:depeco:0208
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    More about this item

    Keywords

    Gender quotas; firm performance; panel data; women directors; spillover effects; female executives;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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