The impact of sustainability (environmental, social, and governance) disclosure and board diversity on firm value: The moderating role of industry sensitivity

Abstract

Using a large panel data set comprising 812 listed European firms, this study investigates whether sustainability disclosure (environmental, social, and governance) and female representation on boards affect firm value. We observe a positive impact of sustainability disclosure and board gender diversity on firm value, suggesting that the best management practices, enhanced stakeholder trust, and female representation on boards improve firm value. We observe that the firms in sensitive industries achieve superior social and governance performance. We also observe that the firms with higher female representation on their boards present significantly superior environmental, social, and governance performance. Our results are robust to different firm and country specific control variables and to year‐ and country‐fixed effects.

Board interlocks and greenhouse gas emissions

“…To test the moderating role of industry in H4, we add the interaction between the interlocks measure and a dummy variable indicating if firms belong to the more environmentally impacting industries ( More Environmentally Impacting ) to our model. Moderation is widely used in environmental studies, such as Cordeiro et al (2020); Qureshi et al (2020); Rajesh and Rajendran (2020); Ren, He, Zhang, and Chen (2019); Wijethilake and Upadhaya (2020). Thus, our model becomes the following: where the interlock measure is one of the four measures: (a) Total Interlocks , (b) Same Industry Interlocks , (c) Cross Industry Interlocks , and (d) Interlocks with Leaders.…”

“…Lu and Herremans (2019) expanded on Li et al (2017) by investigating actual performance and gender diversity, also finding an industry moderating effect. Regarding sustainability disclosure and board diversity as it relates to firm value, Qureshi, Kirkerud, Theresa, and Ahsan (2020) found that the industry was an important moderating variable in their research. More environmentally impacting industries (e.g., resource extractive and manufacturing) feel greater pressure from their stakeholders to reduce emissions compared with less environmentally impacting industries (e.g., retail and service) (Bansal & Clelland, 2004; Hart, 1995; Herremans, Herschovis, & Bertels, 2009).…”

Efeito da adoção da Lei Anticorrupção no valor de mercado das companhias brasileiras listadas no Ibovespa

“…Corporate governance is also a factor that may have an effect on the market value (Caixe & Krauter, 2014;Li et al, 2015;Santos et al, 2019), so a dummy was used to capture the entities listed in the new market and a dummy for when the statements were audited by a Big Four audit company. There are theoretical aspects in the literature that indicate that the adoption of sustainable practices has an effect on the firm value, one that predicts that the market tends to recognize sustainable companies and consequently value them, and another that deals with the market that does not recognize since these expenses reflect only expenses to shareholders (Qureshi et al, 2020;Yu & Zhao, 2015), to capture this aspect, a dummy for companies listed on the ISE was included. Characteristics of organizations can also affect the market value of the entity, including the age of the organization, ownership control, and family business (Brown et al, 2019;Goes et al, 2017;Jara et al, 2019;Klein et al, 2005;Rossi & Harjoto, 2019) were the characteristics controlled in this study.…”

Assessment of Sustainable Competitive Advantages and Influences through Project Management Practices of Construction Industry of Pakistan

“…Currently, sustainability is getting prestigious and organizations are making it a piece of their standard measures to get longer range benefits. The tripled main concern (TBL) viewpoint including environmental, social and financial impacts, empowers us to reevaluate our procedures to work with and accomplish more (Martens et al 2017;Qureshi et al, 2020). This study reconfigures the significance of essential factors enhancing sustainability in construction sector project and how its incorporation helps in project success through moderating role of project manager's management expertise.…”