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Gender quotas quotas between glass ceiling crack and firm performance: evidence from Italy’s financial sector

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  • Barbara Pistoresi
  • Erica Poma
  • Alberto Rinaldi

Abstract

Using a panel data of Italian corporate companies, this paper evaluates the impact of mandatory gender quotas in corporate boards in the financial sector. We find that gender quotas reduce glass ceiling barriers in this traditionally male industry, increasing women’s presence on boards of both companies targeted by the law and in those that are not, with positive spillover effects on this subsample. We also find that the higher women’s presence on boards has different impacts on firms’ financial performance: it has a negative effect on the financial sector as a whole and a positive one on firms with small boards. Our results support the introduction of gender quotas, given its positive spillover effects on glass ceiling barriers and on the overall increased women’s presence on boards.

Suggested Citation

  • Barbara Pistoresi & Erica Poma & Alberto Rinaldi, 2022. "Gender quotas quotas between glass ceiling crack and firm performance: evidence from Italy’s financial sector," Department of Economics 0211, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    • Handle: RePEc:mod:depeco:0211
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    References listed on IDEAS

    as
    1. Bennouri, Moez & De Amicis, Chiara & Falconieri, Sonia, 2020. "Welcome on board: A note on gender quotas regulation in Europe," Economics Letters, Elsevier, vol. 190(C).
    2. Yermack, David, 1996. "Higher market valuation of companies with a small board of directors," Journal of Financial Economics, Elsevier, vol. 40(2), pages 185-211, February.
    3. Aida Sijamic Wahid, 2019. "The Effects and the Mechanisms of Board Gender Diversity: Evidence from Financial Manipulation," Journal of Business Ethics, Springer, vol. 159(3), pages 705-725, October.
    4. Homroy, Swarnodeep & Mukherjee, Shibashish, 2021. "The role of employer learning and regulatory interventions in mitigating executive gender pay gap," Journal of Corporate Finance, Elsevier, vol. 71(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Gender quotas; Glass ceiling; Financial performance; Small corporate boards; Italian Financial sector;
    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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