The Market Reaction to the Appointment of Women on Corporate Boards: Evidence from the Italian Listed Companies

Pastore, Patrizia; Tommaso, Silvia; Ricciardi, Antonio

doi:10.5539/ijbm.v12n12p64

Cited by 9 publications

(7 citation statements)

References 77 publications

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“…In a nutshell, as confirmed in earlier studies (Pastore and Tommaso, 2016;di Donato et al, 2016;Pastore et al, 2017;Solimene et al, 2017), the implementation of Law 120/2011 launched a significant upward trend by increasing both the number of women sitting in the Italian corporate boards and the number of companies in which both genders are represented. However, the progress made by women mainly referred to non-executive positions and they keep managing as non-executive and independent members.…”

Section: A Literature Review On Gender Diversity and Quotasmentioning

confidence: 59%

Effects of gender quotas in Italy: a first impact assessment in the Italian banking sector

Vita

Magliocco

2018

IJSSP

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Purpose The purpose of this paper is to provide a first impact assessment of the Italian quota law in order to explore whether “gender equality by law” contributes to redefining, albeit in part, consolidating and establishing positions of power and decision making. The paper analyses these dynamics by focusing on a specific economic sector, the banking sector. The analysis strives to determine: whether binding quotas are giving rise to an apparent enforcement by building up new distortionary equilibria (such as new forms of horizontal segregation); what extent the financial crisis has impacted on the rhetoric of female representation, and whether it has pushed towards a “regenerative” organizational change aimed at achieving a more inclusive and egalitarian image. Design/methodology/approach The paper is organized as follows. Section 2 reviews the theoretical and empirical debate on gender diversity and quota impact. Section 3 reports macro and micro data on the italian system; Section 4 describes the Italian banking system and gives a first impact assessment on Italian banks of the mandatory gender quotas in Italy (the so-called “Golfo-Mosca law,” named after MPs who proposed the law); some qualitative considerations are carried out on the reactions of Italian banks to the financial crisis in terms of “bridge policies” aimed at corresponding to a higher demand of customer satisfaction and fairness. Section 5 concludes and summarizes the finding of the study. Findings The Italian banking system is not so dramatically ranked among the EU countries as in the recent past. The gender rebalance in management bodies could be considered rather satisfying. If we compare ten-year-old findings, the number of women on board of directors has tripled. But data clearly show a dichotomy due to significant differences between listed and non-listed banks. In non-listed banks, women are still relegated to an under-represented position, reaching only 13 percent on boards of directors (as against 33 percent in listed banks). The data confirm the results found in non-financial sector that women are significantly better represented on audit boards. In accordance with all previous studies, no relevant changes can be noticed on key-decision roles: no CEOs or Directors general are women in listed banks, and women are always more represented in non-executive functions. Originality/value The paper analyses the law experience in Italy as a significant case study by proving that rules such as temporary binding gender quotas (introduced by law in 2011) can be useful, but not always enough to remove blocking or distortive factors in organizational ladders.

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Section: A Literature Review On Gender Diversity and Quotasmentioning

confidence: 59%

Effects of gender quotas in Italy: a first impact assessment in the Italian banking sector

Vita

Magliocco

2018

IJSSP

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“…Specifically, by appointing a woman as a board member, firms signal their commitments to mitigate the possibility of risk-related issues, such as earning management and tax avoidance, destroy their reputation. Although a study documents that market does not react strongly enough to the announcement of the appointment of women in top management teams (Pastore et al , 2017), other studies show that the appointment of female directors is likely to add value, and stock markets react positively to such announcements (Campbell and Vera, 2010; Kang et al , 2010; Sudeck and Iatridis, 2014).…”

Section: Background Literature and Hypotheses Developmentmentioning

confidence: 99%

Women in control and tax compliance

Damayanti

Supramono²

2019

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Purpose The study aims to empirically analyze the effects of the presence of female top managers and owners on corporate tax compliance. Design/methodology/approach Data for analysis were sourced from the World Bank Enterprise Surveys that involved 23,178 private firms in 98 countries. The surveys used a stratified random sampling method by using three criteria, namely, firm size, business sector and geographic region, within each country. Further, data are analyzed using the ordinal logistic regression and supported by the marginal effect analysis. Findings The results show that the presence of female top managers and owners is a significant factor that underlies the firm-level tax compliance difference when firms exhibit relatively lower compliance. Practical implications Although this study shows that the determinants of corporate tax compliance are very complex, there are also crucial roles of top managers and owners' gender. This study advises firms to use the gender equality strategy to generate the best human capital, especially in their top management levels. Besides, this study can be helpful in designing policies that facilitate women to reach top managerial levels or to own businesses as an alternative method to enhance tax compliance for developing countries that fail to generate optimal corporate income tax revenues. Originality/value To the best of the authors’ knowledge, no previous studies examine the effects of the presence of female top managers and business owners on firms’ tax compliance policies. This study contributes to extend the understanding of the important role of women in corporate strategic decision-making, especially in taxation policies in various developing countries.

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“…The announcements of top executive appointments, particularly those of CEOs, have significantly impacted investors' evaluation of firms (Gangloff, Connelly, & Shook, 2016). Studies have shown that investors react to these appointments either positively or negatively, depending on specific characteristics of the newly appointed CEOs (Pastore, Tommaso, & Ricciardi, 2017; Rose, 2019). Several studies found evidence that investors react more negatively to a minority‐status CEO's appointments, such as female CEOs (Gaughan & Smith, 2016; Lee & James, 2007).…”

Section: Introductionmentioning

confidence: 99%

Examining investor reactions to appointments of Black top management executives and CEOs

Gligor

Novicevic

Feizabadi

et al. 2021

Strategic Management Journal

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Research summary The authors investigated investor reactions to the appointment of Black executives. The results indicate that investors respond: (1) more negatively to the announcement of Black CEO appointments than to White CEO appointments, (2) more negatively to the announcement of the Black top management team (TMT) appointments than to White TMT appointments, (3) more negatively to the announcement of Black CEO appointments than to Black TMT appointments, and (4) more negatively to the announcement of Black CEO appointments who are promoted from outside the firm than to the announcement of Black CEO appointments who are promoted from inside the firm. Moreover, the post‐hoc analysis revealed that investors react more negatively to the TMT appointment of Black executives than to the TMT appointment of Latino or Asian executives. Our results show the negative association between the appointment of Black executives and investors' reactions, and we hope it sparks future research examining causal factors and their potential solutions. Managerial summary Investors react more negatively to the announcement of Black CEO appointments than to White CEO appointments, and more negatively to the announcement of Black CEO appointments who are promoted from outside the firm than to the announcement of Black CEO appointments who are promoted from inside the firm. Moreover, investors react more negatively to TMT appointments of Black executives than to TMT appointments of White, Latino, or Asian executives.

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The Market Reaction to the Appointment of Women on Corporate Boards: Evidence from the Italian Listed Companies

Cited by 9 publications

References 77 publications

Effects of gender quotas in Italy: a first impact assessment in the Italian banking sector

Effects of gender quotas in Italy: a first impact assessment in the Italian banking sector

Women in control and tax compliance

Examining investor reactions to appointments of Black top management executives and CEOs

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