The role of women as board directors is a major issue in the current literature. However, little is known about the link between female directors and annual report readability. Leveraging a unique dataset of Italian listed companies comprising 4.616 directors over the period 2009-2013, we are the first to provide evidence that female directors have a beneficial effect for firms with small-connected boards that exhibit low advantages at the level of information collection (via their connections). These results suggest that female participation on corporate boards is invaluable for those firms that need it most. This study is of recent interest to policymakers as it helps to evaluate whether advancing gender equality on corporate boards may lead to higher corporate disclosure quality and thereby benefits international investors.
Key-Words: Bilancio e comunicazione finanziaria, board gender diversity, female board representation, boardroom connections, readability, annual report
