Sara De Masi | Università degli Studi di Firenze (University of Florence) (original) (raw)

Papers by Sara De Masi

Review of Quantitative Finance and Accounting

Business Ethics, the Environment & Responsibility

The relationship between women on boards and corporate environmental performance is puzzling beca... more The relationship between women on boards and corporate environmental performance is puzzling because of the inconclusiveness of previous research. We study this association in light of the homophily and self‐construct theories. Based on data on Italian FTSE‐MIB companies from 2008 to 2017, we investigate how the significance of women directors in enhancing environmental performance varies with the nature of their nomination background. To understand the mechanisms behind the role of women on boards in environmental performance, we differentiate women according to their nomination background (family vs. non‐family). Our panel regression results document that, upon reaching a threshold of three women on boards (the so‐called critical mass), family women directors affect negatively corporate environmental performance. Breaking down the environmental performance powered by subsequential companies' actions into (1) firm environmental technology use, (2) firm resource use efficiency, ...

Edward Elgar Publishing eBooks, Feb 28, 2023

The recent corporate scandals and the rise of financial crisis have led up to the light the issue... more The recent corporate scandals and the rise of financial crisis have led up to the light the issue of corporate governance and CEO compensation. Researchers, business people and politicians have focused on this topic analyzing the elements that can increase firm and social wealth, give incentives and reduce agency costs between managers and shareholders. Although most of the studies focus on unregulated firms, this topic is more controversial and interesting in public utility case. After the privatization, most of public utilities listed, opening their capital to private investors that want that firm maximizes shareholder wealth. Nevertheless, these companies still work in a regulated environment which creates constraints on their behaviours and their governance. Moreover, directors have relationships with governments and politicians that can distort their decisions. Using a unique dataset that includes governance, financial and market regulation variables I study corporate governanc...

The inconclusiveness of previous research on the relationship between women on boards and pro-env... more The inconclusiveness of previous research on the relationship between women on boards and pro-environmental initiatives calls for a reassessment of this association. Following the social identity theory, this study examines the influence of women on boards on the corporate decisions related to the emissions reduction, by distinguishing between women as out-group members and men as in-group members. Using an econometric model that employs a sample of FTSE-MIB companies over the years 2009-2018, the findings show that the ability of the board to use the women’s contribution changes according to the dynamics between out-group and in-group. Specifically, when the board has only one women director, the in-group members (men) fail to consider in their decisions the woman’s perspectives and her sensitivity toward the environmental consequences of the business activities. These dynamics influence the board’s attention towards the protection of the environment. When the out-group reaches a c...

International Journal of Business and Management, 2020

In companies with a controlling shareholder the agency relationship between controlling sharehold... more In companies with a controlling shareholder the agency relationship between controlling shareholders and minority shareholders poses significant issue. Managers may pursue, rather than the interests of the company as a whole, the interest of the controlling shareholder. When there is a controlling shareholder, independent directors may not prove sufficient to monitor the management behaviour, given that they are ultimately appointed by the same controlling shareholder whose possible opportunistic behaviour they are meant to constrain. Therefore, minority shareholders may be given appointment rights to the board: directors elected by minority shareholders may work as a corporate governance mechanism that fosters the board’s willingness and ability to monitor managers’ behaviour, on the assumption that managers are appointed by the controlling shareholder. This paper examines empirically whether having a minority-elected director on corporate boards increases the ability of the board ...

Sinergie Italian Journal of Management, Aug 31, 2022

Purpose of the paper: To understand the "black box" of boardroom behavior, we test the impact of ... more Purpose of the paper: To understand the "black box" of boardroom behavior, we test the impact of different thresholds of female directors on a set of board processes. Using the two percentages indicated by the gender quota law, we distinguish between two possible situations that women face: (1) voicing of women's opinions, and (2) having their voices heard. Methodology: We employ an econometric model to test our research question on a sample of all of the 40 Italian companies listed in the FTSE-MIB between the years 2008 to 2015, Findings: We provide evidence that when women voice to their opinion (i.e. they are represented by at least 20% of the board seats), boards devote more time to their activities, and the cognitive conflicts among members is enhanced. However, when women's voice are heard (i.e. when the threshold of at least 33% of women is reached), boards increase the directors' attentiveness, and women become particularly effective in boosting the cognitive conflicts. Research limits: In our analysis we use proxies of board behaviour that are built from secondary data. Practical implications: Our findings provide insights which have implications for gender quota regulation, and offer a new understanding of the contribution of women at decision-making position levels. Originality of the paper: We further develop the critical mass theory in the context of women on boards, focusing on two different situations that women might face. We analyse the channel variables between women on boards and corporate governance, investigating board behaviour and board dynamics.

The introduction of corporate governance codes in Europe has stressed on the

Management Research Review

Purpose This study aims to examine the effects of board dynamics produced by reaching a certain p... more Purpose This study aims to examine the effects of board dynamics produced by reaching a certain proportion of women on board tasks (monitoring, strategy and advisory). Design/methodology/approach Using a panel of 35 listed companies belonging to FTSE-MIB index, for the years 2008–2015, the hypotheses can be tested by applying random effect regressions. The introduction of gender board quota law in Italy has created a quasi-natural experiment that is applied in the study. Findings This research provides evidence that reaching 33% women on boards, which is the threshold mandated by the Italian gender board quota law, makes a difference for strategy tasks but not for monitoring tasks. This proportion of women on boards creates the board dynamics necessary to empower all board members, allowing the varied knowledge, skills, backgrounds and personal qualities to be leveraged and used in strategy tasks. For monitoring tasks, obtaining a proportion of 20% women on boards, as a first thresh...

Telecommunications Policy, 2018

This paper analyzes the structure of CEO pay in European fixed telecommunication companies, focus... more This paper analyzes the structure of CEO pay in European fixed telecommunication companies, focusing on the impact of state ownership. Results show that, under the (partial or total) control of the state, the level of CEO compensation is lower and pay-performance sensitivity is higher than in privately-controlled firms. This finding suggests the state provides an incentive as well as a monitoring effect. However, when the state holds the majority of the shares, the pay level is significantly affected by the CEO power, suggesting that in these firms, CEOs are more likely to be entrenched with boards and succeed in raising their pay.

The introduction of corporate governance codes in Europe has stressed on the importance of boards... more The introduction of corporate governance codes in Europe has stressed on the importance of boards of directors dominated by independent directors. Many commentators and institutional investors believe that independent directors are particularly effective in controlling CEO’s actions, pushing him to take decisions to improve firm performance, growth and dividend policy. We conduct a study of whether independent directors and other board variables correlate with the performance, the growth and the dividend policy of European public utilities. We find evidence that independent directors reduce future firm performance and that they do not affect neither firm growth nor dividend policy. Using different econometric techniques and controlling for endogeneity, our results do not support the conventional wisdom of corporate governance codes that greater board independence improves firm results.

Management Decision, 2021

PurposeThis paper examines the relationship between women on boards and board monitoring tasks de... more PurposeThis paper examines the relationship between women on boards and board monitoring tasks depending on group categories identified in the Kanter's theory.Design/methodology/approachUsing a sample of the largest listed companies in Spain, Italy and France during the period 2007–2017, this study tests the effect of women's presence based on the following board categories: (1) skewed boards with a percentage of women that is less than 20%; (2) tilted boards with a percentage of women that ranges from 20% to 33%; (3) tilted boards with a percentage of women that is more than 33%; and (4) balanced boards with an equal or quasi-equal gender distribution. The authors use the case of the gender board quota regulation in different European Union countries.FindingsThe results suggest that tilted boards engage in stronger firm monitoring and that the effect of women on board monitoring tasks is positive and statistically significant when the percentage of female directors reaches ...

Recently introduced corporate governance codes and guidelines in Europe have emphasized the impor... more Recently introduced corporate governance codes and guidelines in Europe have emphasized the importance of appointing independent directors to lead organizations’ boards. Many commentators and institutional investors believe that independent directors are particularly effective in controlling the actions of CEOs by pushing them to make decisions to improve firm performance and firm growth. This issue is especially relevant in the public utility industry where the maximization of profit is only one of many interests that must be satisfied. Using a unique financial and governance dataset from European public utilities, we studied whether the presence of independent directors and other board variables correlates with firm performance and firm growth. We found evidence that independent directors do not influence present and future firm performance, and firm growth. Executive directors impact positively both present and future firm performance. Our results challenge corporate governance c...