Female power, ownership and ESG decoupling: evidence from China

Abstract

Purpose

This study explores the influence of female executives on the misalignment between corporate ESG commitments and practices, a phenomenon known as ESG decoupling. It also enhances the understanding of female power on affecting ESG decoupling under different ownership settings.

Design/methodology/approach

This study uses a quantitative research design to explore the impact mechanism of female executives’ proportion on corporate ESG decoupling under different ownership contexts based on a sample of 2,585 firm-year observations from publicly traded Chinese companies between 2011 and 2021.

Findings

Based on agency theory, upper echelons theory and gender socialization theory, our findings indicate that (1) female executives are significantly effective in reducing ESG decoupling, and (2) this effect is more pronounced in non-state-owned enterprises (non-SOEs) compared to state-owned enterprises (SOEs).

Originality/value

This study contributes original insights into the ESG decoupling literature by demonstrating the external influences of corporate governance structure, particularly in the context of China’s unique corporate ownership environment. It also provides strong social implications by highlighting the role of gender dynamics in corporate governance, corporate social responsibility (CSR) behaviors and ESG alignment.

Citation

Yang, L., Ye, M., Wang, H. and Lu, W. (2024), "Female power, ownership and ESG decoupling: evidence from China", International Journal of Gender and Entrepreneurship, Vol. 16 No. 3, pp. 341-366. https://doi.org/10.1108/IJGE-12-2023-0303