Manuscript Type: EmpiricalResearch Question/Issue: This paper sets out to shed light on female representation on Italian corporate boards before the introduction of gender quota legislation in 2012, as well as on the relevance of family connections. We investigate the potential determinants of having boards with diverse representation and the correlation between female directorship and family connections, with a focus on governance measures. Research Findings: Using data on all directors of Italian publicly traded companies from 2008 to 2010, we identify two different models. In the majority of gender-diverse boards, at least one woman has a family connection to the controlling shareholder. Family-affiliated women are more common in companies that are small, have a concentrated ownership, are in the consumer sector, and have a larger board. Conversely, non-family-affiliated women are more common on the boards of companies that are widely held, have younger and more educated boards, have a higher proportion of independent directors, and have a smaller number of interlocked directors. With reference to governance-related outcomes, the number of board meetings appears to be negatively correlated to both the presence of family members and female directors. Additionally, women show lower attendance than men at board meetings. Theoretical/Academic Implications: The paper provides support for theories on the differences between the governance of family-owned and non-family-owned companies. Practitioner/Policy Implication: The study offers insights to policymakers implementing gender quota legislation. Substantial effort should be devoted to ensuring that board diversity is associated with actual independence of board members.

No abstract