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Corporate boards and environmental offence conviction: evidence from the United Kingdom

Venancio Tauringana (University of Southampton, Southampton, UK)
Dragana Radicic (Department of Geography, University of Cambridge, Cambridge, UK)
Alan Kirkpatrick (Business School, Bournemouth University, Bournemouth, UK)
Renata Konadu (Business School, Bournemouth University, Bournemouth, UK)

Corporate Governance

ISSN: 1472-0701

Article publication date: 3 April 2017

597

Abstract

Purpose

This paper aims to report the results of an investigation into the relationship between corporate boards and the likelihood of a firm being convicted of an environmental offence in the United Kingdom (UK).

Design/methodology/approach

The study uses binary logistics regression analysis to model the relationship between corporate boards and the likelihood of a firm being convicted of an environmental offence in the UK, controlling for firm size, financial leverage and profitability.

Findings

The results suggest that the likelihood of a firm being convicted of an environmental offence increases with board size but decreases with the presence of a woman on the board. No support is found for the authors’ hypotheses about the proportion of outside directors and the presence of a lawyer on the board. Marginal effects’ results also show that adding one member to the board increases the chance of a firm being convicted for an environmental offence by 4.2 per cent, while having a woman on the board decreases the likelihood of a firm being convicted of an environmental offence by 31.8 per cent.

Research limitations/implications

The sample size of 55 firms is small which could affect the generalisability of the study.

Originality/value

The study uses proprietary data obtained from the UK Environmental Agency to provide evidence for the first time how corporate boards affect the chances of a listed firm being convicted of an environmental offence in the UK.

Keywords

Citation

Tauringana, V., Radicic, D., Kirkpatrick, A. and Konadu, R. (2017), "Corporate boards and environmental offence conviction: evidence from the United Kingdom", Corporate Governance, Vol. 17 No. 2, pp. 341-362. https://doi.org/10.1108/CG-05-2016-0105

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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