Gender pay gap (GPG): Addressing the correlation between pay disparities and financial performance within Italian listed companies

This study investigates the relationship between the gender pay gap (GPG) and corporate financial performance in a sample of Italian listed companies on the FTSE MIB index. Drawing on theories of wage inequality, organisational performance, and industrial relations, it examines whether gender-based pay disparities are associated with firm profitability and explores the role of collective bargaining coverage. This quantitative analysis uses data collected from sustainability reports, annual reports, and financial statements of 39 FTSE MIB companies over the period 2022–2025. GPG, return on equity (ROE), return on assets (ROA), and collective bargaining agreement coverage (CBAC) were analysed through ordinary least squares (OLS) regression models. The results reveal that gender pay disparities remain widespread among Italian listed companies, with an average GPG of approximately 9 per cent, but do not indicate a statistically significant relationship between GPGs and corporate profitability. The regression model using ROE shows a weak positive but insignificant association between GPG and profitability, while the robustness test employing ROA indicates a weak negative and equally insignificant relationship. Furthermore, no meaningful association emerges between collective bargaining coverage and gender pay disparities. These findings suggest that gender pay inequality is not a significant predictor of firm profitability within the analysed sample, and that collective bargaining coverage alone is insufficient to explain differences in pay equity across firms. The study contributes to the emerging literature on gender pay transparency and corporate performance in Italy.