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Gender diversity and corporate performance: Emphasis on sustainability performance
Author(s) -
Provasi Roberta,
Harasheh Murad
Publication year - 2020
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.2037
Subject(s) - gender diversity , sustainability , corporate social responsibility , robustness (evolution) , corporate sustainability , accounting , sustainability reporting , business , differential (mechanical device) , representation (politics) , diversity (politics) , corporate governance , finance , political science , public relations , politics , engineering , ecology , biochemistry , chemistry , gene , law , biology , aerospace engineering
In this research, we empirically investigate the impact of the board's female representation on corporate financial and sustainability performance after the introduction of the minimum gender quotas in Italy in 2011 (Golfo‐Mosca Law). We studied the 40 companies of the FTSE‐MIB index for 3 years 2016–2018. Using yearly regression analysis, pooled analysis, and differential analysis, we find that the female involvement on both boards has almost no significant effect on the financial performance; however, a significant association is found with the corporate sustainability performance. The robustness checks using differential analysis confirm the later relationship in which firms that improved female representation had also an ethical score upgrade. Interestingly, we also provide that there is an optimal level of gender quotas that maximizes sustainability performance and beyond that, a negative impact on performance might be detected.