Women in the boardroom and their impact on climate change related disclosure

Hossain, Mohammed; Farooque, Omar Al; Momin, Mahmood Ahmed; AlMotairy, Obaid

doi:10.1108/srj-11-2016-0208

Cited by 44 publications

(53 citation statements)

References 211 publications

(310 reference statements)

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“…This study supports the previous studies on board capital theory (Ciocirlan and Pettersson, 2012;Ben-Amar et al, 2017;Hollindale et al, 2017;and Hossain et al, 2017) that companies having women as board of directors tend to consider ethical aspects in decision making, especially when it is related to stakeholders of the company. This study also supports the previous studies on critical mass theory (Konrad et al 2008;Torchia et al 2011;Joecks et al 2013 andAhmed, Monem, Delaney andNg., 2017) that companies with three women on board (critical mass) tend to influence decision making that results into ethical decisions which in turn promote more disclosure and transparency.…”

Section: Resultssupporting

confidence: 90%

“…A notable study on climate change disclosure done in India is Kumar and Firoz (2018) which studied the impact of climate change disclosure on the financial performance of Indian companies. There are studies which analysed the influence of women on board of directors on climate change-related disclosure using samples from developed countries -both individual (Hollindale et al, 2017) and multicountries (Hossain et al, 2017;Ciocirlan and Pettersson, 2012). From developing countries, very few studies are available.…”

Section: Research Gapmentioning

confidence: 99%

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Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Charumathi¹,

Rahman²

2019

AABFJ

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Participation of women on corporate boards is increasing across the globe. Corporate with women directors on their board are more likely to address the emerging strategic issues of climate change, enhance GHG emission disclosure strategy and communicate the actions to the stakeholders. According to Board Capital Theory, the presence of women on boards increases board capital breadth in different dimensions. According to Critical Mass Theory, boards with three or more female directors tend to influence the board's decision-making process which results in more favourable environmental disclosure. Findings of earlier studies reiterate that female executives and directors bring different ethical values and traits to decision-making. This paper studies the effect of women on board on climate change reporting to the Carbon Disclosure Project (CDP) by the large Indian companies. The sample for this study includes S&P BSE 100 indexed companies and the period of the study is 6 years ranging from 2010-11 to 2015-16. This study used secondary data. The CDP data and financial data are taken from Bloomberg Professional Database. Based on the items disclosed by companies for CDP questionnaire, a Carbon Disclosure Index is constructed and used in this study. Using a multiple regression model, it is found that there is a significant positive relationship between the percentage of women directors on boards and climate change-related disclosure to CDP. Using independent 't' tests, it is found that companies having at least three women directors disclose more. Thus, this study supports both board capital theory and critical mass theory.

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Section: Resultssupporting

confidence: 90%

Section: Research Gapmentioning

confidence: 99%

Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Charumathi¹,

Rahman²

2019

AABFJ

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“…Previous literature widely concurs that women display a greater orientation towards sustainability initiatives and are likely to contribute towards a greater awareness of the need to develop social disclosure strategies (Agarwal, ; Horbach & Jacob, ; Hossain, Farooque, Momin, & Almotairy, ). In this line, researchers have recently examined the association between female directors and CSR‐related disclosures by using a number of theoretical frameworks.…”

Section: Theoretical Framework and Hypothesis Developmentmentioning

confidence: 95%

Sustainable development disclosure: Environmental, social, and governance reporting and gender diversity in the audit committee

2018

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“…They also relied on the CDP score from 2008 to 2014 to measure GHG information and found that gender diversity is positively associated with disclosure of GHG information. Finally, Hossain et al (2017) investigated the association between gender diversity and disclosure, as measured by the CDP score, of 331 firms covering 33 countries from 2011 to 2013. They found that gender diversity was positively associated with disclosure of GHG information.…”

Section: Board Diversity and Disclosure Of Ghg Informationmentioning

confidence: 99%

“…In addition, these studies (e.g. Liao et al, 2015;Hossain et al, 2017) focused only on gender diversity ignoring the other dimensions of board diversity. In addition, these studies mainly measured disclosure of GHG information using a dummy variable, according to the old methodology of CDP by classifying companies into participants and nonparticipants in the survey.…”

Section: Board Diversity and Disclosure Of Ghg Informationmentioning

confidence: 99%

The effect of board diversity on disclosure and management of greenhouse gas information: evidence from the United Kingdom

Al-Qahtani

Elgharbawy

2020

JEIM

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PurposeThe global interest in climate change makes carbon information important for decision-making. This study examines to what extent companies voluntarily disclose and manage greenhouse gas (GHG) information and whether board diversity and industry type explain variations in the level of disclosure and management of GHG information.Design/methodology/approachCross-sectional data analysis is used for the Financial Stock Exchange 350 (UK FTSE 350) in 2017. Disclosure of GHG information is measured using the scores of the Carbon Disclosure Project (CDP), whereas board diversity is measured using gender diversity, board tenure and board skills. The control variables include firm size, leverage, industry type, board meetings, board size, board independence and CEO duality. Ordinal logistic regression (OLR) is used for data analysis.FindingsThe results indicate that representation of female directors in the board of directors positively influences disclosure and management of GHG information. Conversely, a high percentage of directors with a financial and industrial background negatively affects GHG information, while board tenure has no significant effect on GHG information. Concerning the control variables, only firm size and industry type are significant in their relationships to GHG information.Research limitations/implicationsThe main limitation of the study is investigating only few variables of board diversity. Future studies could investigate other variables such as cultural diversity and age diversity. Furthermore, cross-sectional data analysis cannot capture the dynamic casual impact between the determinants of disclosure and management of GHG information. Future studies could use long-term data, which may yield results that are more significant.Originality/valueThe study emphasizes the importance of the role of female directors in ensuring more transparency toward climate change activities. The findings of this study could be of interest to policymakers and stakeholders and could be used to take initiatives to reduce gender bias and increase the percentage of women in the boardroom. It is also likely to be beneficial for investors and stakeholders to evaluate carbon footprint of businesses and to assess the extent to which they meet their environmental responsibility.

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Women in the boardroom and their impact on climate change related disclosure

Cited by 44 publications

References 211 publications

Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Do Women on Boards Influence Climate Change Disclosures to CDP? – Evidence from Large Indian Companies

Sustainable development disclosure: Environmental, social, and governance reporting and gender diversity in the audit committee

The effect of board diversity on disclosure and management of greenhouse gas information: evidence from the United Kingdom

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