Andrea Paci

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, and (3) corporate emission reduction, we also provide evidence for the negative effect of family women directors. This may suggest that family women directors do not reveal their communal characteristics; thus, they are not as sensitive to environmental issues as non‐family women directors.