Academics in the boardroom: The effect of a gender quota regulation

Abstract

In the framework of literature devoted to corporate governance and board composition, we take a peculiar viewpoint and focus on the presence of university professors in the governing body of Italian banks. In particular, we test whether the gender quota regulation increased the presence of female professors as directors. We find evidence of a relevant increase in the probability of designating women from the academia in the years immediately following the entry into force of the gender quota regulation in Italy, whereas no significant increase is in place for male professors over the same period. Our results suggest the need to enhance the career opportunities for women up the C-levels in order to fuel diversity in the boardrooms, not only in independent but also in executive roles. In light of the empirical evidence provided, a re-thinking of gender quota regulations would also be advisable in order to better pursue the desired outcomes.