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Board gender diversity and environmental performance: An industries perspective
Author(s) -
Lu Jing,
Herremans Irene M.
Publication year - 2019
Publication title -
business strategy and the environment
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.123
H-Index - 105
eISSN - 1099-0836
pISSN - 0964-4733
DOI - 10.1002/bse.2326
Subject(s) - diversity (politics) , gender diversity , endogeneity , perspective (graphical) , variety (cybernetics) , matching (statistics) , resource (disambiguation) , process (computing) , marketing , propensity score matching , business , psychology , industrial organization , sociology , economics , econometrics , management , computer science , statistics , corporate governance , artificial intelligence , anthropology , computer network , mathematics , operating system
This study investigates whether gender diversity on the board of directors in the United States is associated with firms' environmental performance. Under the theoretical framework of resource dependence theory, we argue that gender diversity brings a greater variety of skills to the board. Diversity allows for a healthy mix of knowledge and experience to improve the decision‐making process of the board. Using propensity score matching and controlling for endogeneity, this study uses a more rigorous statistical model than previous work. It also uses content analysis of directors' biographies to provide evidence of the role that gender diversity plays. We find gender diversity is positively associated with firms' environmental performance scores primarily in the more environmentally impacting industries. Therefore, our research provides valuable direction for those firms working to improve both their boards' gender diversity and their environmental performance. Our findings also offer insight into the mixed results of previous studies.