Are gender‐diverse boards eco‐innovative? The mediating role of corporate social responsibility strategy

Hanaysha

2023

IJAIM

Self Cite

Purpose This study aims to investigate the relationship between board gender diversity and environmental, social and governance (ESG) controversies and to determine if a critical mass of female directors has a significant impact on ESG performance. Design/methodology/approach The study analyzes a sample of non-financial companies from 13 European countries between 2004 and 2021. The primary method used to reach conclusions was the pooled ordinary least squares regression. Additionally, the study used supplementary techniques such as alternative measurement, sub-sample analysis and two-stage least squares to enhance its reliability. Findings The results indicate that a higher representation of women on boards is correlated with a reduction in the number of ESG controversies, particularly when there are three or more female directors. Furthermore, the relationship between board gender diversity and ESG controversies may be affected by factors such as industry, governance and a company’s environmental performance. Practical implications This study suggests that increasing women’s representation on boards may mitigate ESG controversies and improve firm reputation and performance, especially in industries with high ESG risks. Policymakers can support this through policies, targets, training and inclusive practices. The findings also inform investors and stakeholders of the relationship between board gender diversity and ESG controversies. Originality/value This study expands the understanding of the relationship between board gender diversity and sustainable accounting and finance. It focuses on the effect that having female board members has on corporate policies, which is significant for shaping global policies that promote diversity on boards.

Section: Reducing Esg Controversiessupporting

confidence: 69%

Section: Introductionmentioning

confidence: 99%

Breaking the glass ceiling for a sustainable future: the power of women on corporate boards in reducing ESG controversies

Hanaysha

2023

IJAIM

Self Cite

“…Our study focuses on the variable of BGD, which is defined as the percentage of women serving on a company's board of directors. This measure is widely used in previous research on board diversity and allows for comparability with other studies in the field (Bear et al, 2010; Francoeur et al, 2019; Issa & Bensalem, 2022).…”

Section: Methodsmentioning

confidence: 99%

“…The presence of female directors on corporate boards is widely recognized as a critical aspect of effective corporate governance. Female directors can bring valuable contributions to boardroom discussions, positively impacting the decision‐making process and promoting biodiversity conservation (Haque & Jones, 2020; Issa & Bensalem, 2022; Zaid et al, 2020). Furthermore, having female directors on corporate boards can positively impact environmental sustainability, according to resource dependency theory and upper echelon theory.…”

Section: Introductionmentioning

confidence: 99%

Firm's biodiversity initiatives disclosure and board gender diversity: A multi‐country analysis of corporations operating in Europe

Zaid

2023

Bus Strat Env

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Environmental practices, in particular biodiversity protection, are crucial for a business to maintain its market valuation and social license. Grounded in resource dependency theory and upper echelon theory, we test the link between board gender diversity and firm's biodiversity initiatives disclosure. Also, we investigate potential moderating variables such as eco‐innovation, resource consumption reduction, and firm's corporate social responsibility (CSR) awards that could strengthen the link between board gender diversity and corporate biodiversity initiatives disclosure. To empirically test our study's framework, we rely on a sample of non‐financial firms operating in 13 European countries between 2002 and 2021. Our estimation results show that women's presence on boards is positively associated with better disclosure of biodiversity conservation initiatives of a firm. Also, our study suggests that firm's eco‐innovation, resource usage, and CSR awards are important and moderate the board gender diversity and biodiversity conservation disclosure nexus. Our results hold to a battery of sensitivity analyses.

“…In today’s business landscape, companies are expected to operate responsibly, making environmental sustainability an important factor in their overall strategy (Issa and Bensalem, 2022). Companies must recognize the multiple stakeholders they impact, including the environment, and understand that their actions towards environmental protection can have a significant impact on their financial performance.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Powering profits: how renewable energy boosts financial performance in European non-financial companies

Hanaysha

2023

IJAIM

Purpose The study aims to investigate the relationship between renewable energy use and financial performance in non-financial companies in European countries. Design/methodology/approach This study examines a panel data set consisting of 1,919 firm-year observations of non-financial companies operating in 13 European nations, covering the period from 2014 to 2021. The study uses the ordinary least squares (OLS) and the two-stage least squares method (2SLS) as the baseline models and further enhances robustness with sub-sample analysis. Findings The results demonstrate a positive link between renewable energy use and financial performance, and these results hold up across different measurements, sub-sample analysis and model specifications, demonstrating their robustness. Furthermore, the results indicate that some factors such as the industry nature and environmental, social and governance (ESG) controversies have an impact on this positive association. Practical implications The findings are substantial for both policymakers and companies, highlighting the benefits of incorporating renewable energy into their operations for improved business success. Originality/value This study adds to the existing body of literature on the effect of environmental performance on a company’s success by focusing on a novel aspect – the correlation between renewable energy usage and firm performance. It responds to the recent request from researchers to investigate different aspects of sustainability, with a specific emphasis on renewable energy, which is a vital factor in reducing carbon emissions and improving financial performance.