Exploring corporate boards’ gender diversity and its role in shaping mergers and acquisitions decisions: Evidence from Italy

This study examines the impact of board gender diversity on firms’ strategic decision-making in mergers and acquisitions (M&A), within the regulatory context of the Italian Golfo-Mosca Law, which mandates gender quotas on corporate boards. Using a sample of 165 Italian listed firms engaged in M&A transactions over the period 2011–2016, the analysis investigates whether female representation and the achievement of a critical mass influence M&A activity. The results show that the mere presence of female directors does not significantly affect M&A decisions. However, when boards meet the gender quota threshold, a positive association emerges with both the likelihood and frequency of M&A transactions. These findings suggest that the effectiveness of board diversity depends on reaching a critical mass rather than simple representation. The findings suggest that the achievement of a critical mass of female directors may be interpreted through the lens of social identity theory, while behavioural differences remain observable when women occupy executive leadership positions such as chief executive officer (CEO). Overall, the paper provides evidence on how board composition and regulatory frameworks jointly shape corporate strategic behaviour, offering implications for governance design and policy interventions.