Gender diversity and financial performance in family firms: the mediating role of corporate social and environmental responsibility

The study investigates how board gender diversity (BGD) affects corporate financial performance (CFP) in the specific organizational setting of family firms (FFs). Additionally, the study aims to verify, whether and to what extent, the engagement of FFs in corporate social and environmental responsibility (CSER) initiatives mediates this relationship. Adopting an international sample of 335 FFs, from 2009 to 2020, the results of the current study indicate that greater gender diversity on FFs’ corporate boards leads to more robust CFP. Moreover, this effect is empowered by the CSER engagement, which acts as a reinforcing mediator. The present study emphasizes that increased female representation on corporate boards, through the adoption of CSER strategies, meets the non-economic objectives typical of family firms, positively impacting financial performance.