Microfoundations of Value Creation in Bank Risk Taking: Exploring the Effects of Gender and Training

In the banking literature, investigating banking risk and its determinants is a key topic, especially since the global financial crisis that emerged from 2007. However, it seems that scientific research in this field has so far focused its attention mainly on the macro determinants of banking risk. Using a sample of Italian banks over the period 2013–2020, and adopting a microfoundations perspective, this study investigates the relationship between gender diversity in top management positions and bank risk, with a special focus on the mediation mechanisms behind this relationship. Our results demonstrate that the presence of females in top positions increases bank stability via intense employee training. The research findings provide novel insights into the determinants of bank risk from a microlevel perspective, with subsequent theoretical and managerial implications regarding the potential of gender diversity in top management positions and the attention to employee training. These aspects complement the banks' sustainability strategies and will therefore receive increasing attention from the market.