THE IMPACT OF BOARD DIVERSITY ON OPERATING PERFORMANCE AND FIRM RISK: EVIDENCE FROM THE ITALIAN MARKET

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Abstract

This paper analyses the relationship between board diversity and some board operating performance but also the relationship between board diversity and enterprise risk. The analyses, carried out on a sample of 249 Italian companies during the period 2006-2009, show that diversity affects the operating performance of the board. The results show a significant positive relationship between the presence of independent women board directors and the frequency of the board meetings, but a negative relationship between the number of meetings and the nationality diversity. With regard to the intermediate performance, there is a significant relationship with gender diversity. Besides, the analysis shows a negative relationship between firm systematic risk and number of foreign directors.

Keywords: Board Diversity, Board of Directors, Audit Committee, Risk, Corporate Governance

How to cite this paper: Cucinelli, D. (2013). The impact of board diversity on operating performance and firm risk: Evidence from the Italian market. Corporate Ownership & Control, 10(2), 91-103. https://doi.org/10.22495/cocv10i2art7