Arguments based on ethical sensitivity differences, gender-based functional differences, and gender discrimination suggest that having more women on the board of directors improves corporate environmental actions (CEA). However, empirical evidence of this relationship has provided inconsistent results. To explore this inconsistency, we draw on critical mass theory to examine how women on boards influence CEA. Using a sample of Chinese listed firms during 2010–2016, we find that firms with a critical mass of at least three female directors on their boards engage in both higher quality and faster speed of environmental actions. In addition, we find that government monitoring (as a formal institution) positively moderates this relationship. We also find that local religious ideology (as an informal institution) positively moderates the relationship between critical mass of women on the boards and CEA speed. Our findings provide insights about gender diversity on boards to corporations and policymakers.

Does top management team (TMT) regulatory focus impact firm environmental misconduct (FEM)? If so, how and when? Integrating upper echelon theory with regulatory focus theory, we examine how regulatory focus, as one of the most direct and important psychological characteristics of TMT, impacts FEM. Additionally, we explore how this relationship is moderated by external and internal environmental dynamism from the perspective of regulatory fit. Based on a sample of Chinese listed firms from 2011 to 2017, we conduct computer-aided content analysis to quantify TMT regulatory focus. Results show that TMTs high in promotion focus are more likely to engage in FEM, whereas TMTs high in prevention focus are less likely to misconduct. Moreover, external environmental dynamism strengthens (weakens) the positive (negative) relationship between promotion (prevention) focus and FEM. Internal environmental dynamism strengthens the positive relationship between TMT promotion focus and FEM. By examining this motivation-based psychological characteristic of TMT, the findings suggest the need to consider TMT regulatory focus when analyzing the antecedents of FEM.

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We build upon the approach/inhibition theory of power to explain why and when CFO ranking in top management team (TMT) informal hierarchy may be related to entrepreneurial firm initial public offering (IPO) fraud, a typical type of unethical behaviour with potential benefits and costs. Our theory explains why CFOs with high rankings in TMT informal hierarchy tend to have a high level of psychological sense of power and may pay more attention to potential benefits rather than costs of unethical behaviours, resulting in a high likelihood to engage in fraud during IPO process. We further suggest that the positive relationship between CFO ranking in TMT informal hierarchy and entrepreneurial firms IPO fraud is weakened by CEO narcissism (internal environment) and environmental dynamism (external environment), respectively. Based on a sample of Chinese entrepreneurial firms listed in growth enterprise market from 2010 to 2017, we find support for our theoretical predictions. By focusing on the ‘specialist’ executives – CFOs – the findings suggest the need to consider rankings in TMT informal hierarchy when analysing the antecedents of IPO fraud.