Board Composition and Strategic Risk-Taking: The Role of Gender Quotas in M&A Decisions

This study examines the relationship between gender diversity and firms’ M&A activity in the context of the Italian gender quota regulation. Using a longitudinal sample of 165 listed companies and 990 firm-year observations over the period 2011–2016, the analysis investigates whether female board representation, the achievement of a critical mass of female directors, and female CEO leadership influence firms’ acquisitive behaviour. A two-part modelling approach is employed to examine both the likelihood and intensity of M&A activity. The findings show that the mere presence of female directors does not significantly affect acquisition decisions. However, reaching the regulatory threshold of female representation is positively associated with both the likelihood and number of acquisitions. Conversely, firms led by female CEOs exhibit lower M&A activity. Overall, the results highlight the importance of critical mass, governance roles, and institutional context in understanding how gender diversity influences strategic corporate decision-making.