Purpose This study aims to investigate the relationship between family managers and firms’ risk levels in a context characterized by low investor protection and firm opacity. Specifically, this paper examines whether the level of risk faced by firms is affected by family shareholders’ ownership stake and activism. Design/methodology/approach Corporate governance data were hand-collected for a sample of 90 Italian listed companies and 540 observations from the year 2018. Regression analysis was then used to test the research hypotheses. Findings This study provides evidence of a positive association between active family ownership and risk faced by sampled firms. This study also finds that the number of inside directors is negatively correlated with firms’ risk-taking. Overall, the results confirm family managers’ influence on firms’ risk choices and show consistency with theoretical arguments in favor of hiring professional managers to guide family-owned firms. Practical implications Practical implications emerge from the study findings. First, family owners should consider to hire a larger number of professional managers to support firms’ wealth maximization and retention and to reduce default risks. Second, investors should take into account the firms’ board of directors and management composition to better assess the investments risk level. Finally, the positive correlation between active family owners and systematic risk suggests the opportunity for regulators to improve the legal requirements related to minority directors to increase their effectiveness and, therefore, minority shareholders’ protection. Originality/value This study extends the literature on the association between ownership structure and firms’ risk levels, showing the effect of family managers on firms’ risk levels. Besides, to the best of the authors’ knowledge, no previous study investigates professional executives’ influence on risk when family ownership prevails.

This study analyzes the relationship between the presence of women on the board of directors and the performance results achieved by a sample of listed companies on the Italian stock market. Although many studies have investigated the relationship between women on board and corporate governance effectiveness, research results are inconclusive regarding their impact on corporate performance. The article analyzes a set of board attributes in relation to the presence of women on the board for 47 Italian listed companies for the years 2018 and 2019. Preliminary results show a positive correlation between the participation of women on the board of directors and sampled companies’ performance. Therefore, the results confirm the importance of women’s presence on the board of directors in influencing the financial performance of companies

This study uses a regression model and data related to board of directors' characteristics to investigate the association between corporate governance and firms' risk levels. Building on the agency theory, we analyze 108 Italian listed companies to explore the interaction between board size and directors' attendance at board meetings and corporate risk taking. Results show that larger boards contribute to lowering firms' risk. We also find that, as board members attendance at board meeting increases, risk faced by firms decreases. Our study contributes to the extant literature as it provides evidence of the role of outside and inside directors in mitigating managers' risky practices.