The implications of female directors for risk-taking in Italian high-tech boards

Combining the predictions of upper echelon theory with board human capital theory, the chapter aims to shed light, first, into the effects of female board directors on firm risk-taking and, second, on the moderating role of board human capital diversity on this relationship. To this end, through OLS regression analysis, we empirically investigate a sample of 149 Italian high-tech firms in the period from 2012 to 2015. The findings show that a greater representation of female directors on the board negatively affects firm risk-taking and such effect is increased by board human capital diversity. Thus, these results highlight the joint effect of gender and human capital diversity in the boardroom on firm outcomes. In doing so, the chapter contributes to the book by pointing out the boundary conditions under which gender diversity can “break down barriers” and positively affect firm risk-taking. The findings have also implications for board nomination committees as they show how the gender and human capital diversity of board directors are important factors to consider when making board appointments in relation to firm risk-taking.