Does duration of team governance decrease corporate carbon emission intensity

Abstract

The study explores the effects of duration of team governance (DTG) on carbon emission intensity of 608 U.S. listed corporations merged three official datasets of Carbon Disclosure Project (CDP), Compuatat and BoardEx over the period 2009-2018, using unbalanced panel data analysis. It bridges three theoretical approaches: group development theory (GDT), social identity theory (SIT) and resource dependence theory (RDT) and applies econometric analysis techniques to investigate corporate carbon emission intensity. The result shows an inverted U-shaped relationship between DTG and carbon emission intensity. It is interesting that carbon emission intensity increased when the duration is less than 6.52 years, however, the duration exceeds 6.52 years decreases carbon emission intensity.We also find other factors of team size and gender diversity moderate the U-shaped relationship, further testing the optimal team of 8-11 members and 3-4 women members. Meanwhile, the finding shows that the low-carbon innovation is an effective mediator for DTG to decrease carbon emission intensity. The paper is important for managerial implication and policy making.

Performance: Confirming, refining, and refuting theories

“…In this case, the machine might identify themes that could be explored through traditional approaches such as grounded theory and thematic analysis. Later in the analysis, researchers could use supervised machine learning (Miric, Jia & Huang, 2023) to assess the extent to which the human- Xia, Zhu and Cai's (2023) research would involve using identical datasets and analytical methods to reproduce the analysis of how team governance duration affects carbon emission intensity, specifically verifying the inverted U-shaped pattern identified. This reproducibility effort could extend to examining the moderating effects of team size and gender diversity and the mediating role of low-carbon innovation, thus reinforcing the study's conclusions and contributing to the knowledge of sustainable corporate practices.…”

“…A study conducted by Xia, Zhu and Cai (2023) examined how team governance duration influences carbon emission intensity, integrating resource dependency theory, group development theory, and social identity theory using data from Compustat, BoardEx, and The Carbon Disclosure Project. To conduct a reproducibility study, researchers could utilize the same datasets and analytical methods to verify the results.…”