We also emphasize the policy implications of these findings (lines 453-462, 497-503). To better reflect the policy implications of the study, we incorporate changes that are diffuse through the text. In particular, we argue that promoting gender diversity cannot deliver its full potential, and may even lead to adverse results unless it is accompanied by measures that mitigate political and economic uncertainty. These measures would create an enabling environment both for households and entrepreneurs. Such measures should increase agents’ confidence, dump their willingness to invest and expand the activity by reducing their aversion to risk. The accompanying measures should primarily target building and strengthening institutions to unlock this potential. Institutions are a defence against uncertainty. They contribute to anchoring economic agents’ expectations and stabilize the economy. We also elaborate on the finding of the critical mass theory. This result suggests that a very effective way to improve environmental quality and mitigate the adverse effects of economic activities is to encourage gender diversity in corporate boards in countries with low uncertainty where we find a higher impact on firms’ environmental performances. In these countries, the margin for progress is large and the effect of improving gender diversity in corporate boards materializes more easily and at lower costs, as these countries are far from their efficiency frontiers (lines 445-461 and 482-503).
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