Search results
1 – 1 of 1Othar Kordsachia, Alexander Bassen, Christian Fieberg and Katharina Wolters
This empirical study aims to examine the association between gender-diverse boards and corporate carbon emissions and estimates the effect of board gender diversity on stock price…
Abstract
Purpose
This empirical study aims to examine the association between gender-diverse boards and corporate carbon emissions and estimates the effect of board gender diversity on stock price reactions to climate activism. This study contributes to the inconclusive literature on the link between gender-diverse boards and firms' financial performance by examining a single and plausibly isolated channel of association (i.e. attention to climate change).
Design/methodology/approach
The authors use parametric and non-parametric panel data techniques to examine the association between gender-diverse boards to corporate carbon emission. The system generalized methods of moments (SYS-GMM) estimator is used to address endogeneity concerns. The authors use the event study methodology to examine difference in stock price reactions to climate activism.
Findings
The results show that high board gender diversity is associated with lower corporate carbon emissions and higher stock returns to climate activism.
Originality/value
This is the first study to isolate public attention to climate change as a relevant channel through which gender-diverse boards have an impact of firms' financial performance. This study is timely and important due to the immediate threat of global warming and the recent introduction of mandatory board gender quotas in many countries around the world.
Details