Gender diversity on board committees and ESG disclosure: evidence from Canada

Khemakhem, Hanen; Arroyo, Paulina; Montecinos, Julio

doi:10.1007/s10997-022-09658-1

Cited by 26 publications

(14 citation statements)

References 42 publications

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“…The hypothesis aligns with Agency Theory, which posits that diverse board composition can lead to more effective governance and decision-making. Female representation on boards is associated with cautious and transparent decisionmaking, particularly relevant in managing the complexities of alternative finance (Bannò et al, 2023;Khemakhem et al, 2022). This prudent approach may result in lower risk perceptions among lenders, potentially leading to reduced costs of debt for such firms.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Alternative finance in bank-firm relationship: how does board structure affect the cost of debt?

Palmieri,

Geretto,

Polato

et al. 2024

J Manag Gov

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In this paper, we examine the relationship between alternative finance and board structure on the cost of debt for firms, focusing on the unique effects of differing board characteristics. Using a dataset of 176 European listed companies observed annually from 2013 to 2022, we dissect this relationship through several hypotheses considering factors such as the supply of alternative finance, board gender composition, age, expertise, and board turnover. Our findings reveal that increased alternative finance credit supply escalates the cost of debt, especially for firms with lower ESG scores. Firms with young boards, boards specialized in economics or low, and board turnover also experience a rise in borrowing costs with increasing of alternative finance. Through a pooling 2SLS model, we provide robust evidence about the interplay of alternative finance and varying board structures on the cost of debt. This research clarifies the intricacies of bank-firm relationships in alternative finance and holds significant implications for supervisory authorities, banks, and policymakers. It underscores the necessity of good corporate governance in managing the cost implications of alternative finance. It calls for tailored risk assessment strategies, conducive regulatory frameworks, and vigilant supervisory approaches to create a resilient financial ecosystem where alternative finance can thrive without inordinately inflating the cost of debt.

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Section: Hypothesis Developmentmentioning

confidence: 99%

Alternative finance in bank-firm relationship: how does board structure affect the cost of debt?

Palmieri,

Geretto,

Polato

et al. 2024

J Manag Gov

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“…The diverse perspectives shared in boards with diversified membership facilitate corporate innovation (Cumming & Leung, 2021). Khemakhem et al, (2022) contend that the composition of female directors promotes voluntary corporate disclosure related to environmental sustainability, social responsibility, and governance and accountability. Given their painstaking nature, female directors are presumed to be far better monitors than their male counterparts who are susceptible to reckless corporate overrides (Rocca et al, 2020;Liu et al, 2014;Ahmed & Ali, 2012).…”

Section: Demographic Diversity and Corporate Performancementioning

confidence: 99%

Directors’ Diversity and the Economic Value of Equity

Abdullahi¹,

Bello²

2023

AEF

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The paper examines the effect of directors’ demographic and cognitive diversity on the economic value of equity based on longitudinal data from the top 15 Deposit Money Banks (DMBs) in Nigeria. The study finds steadily robust evidence that shows foreign and female directors at critical mass representation positively influence banks’ net worth (a proxy of the economic value of equity). Contrary to the hypothesis, the result of cognitive diversity was rather inconclusive due to the diverse direction of causality. While the effect of directors with Bachelor of Law degrees and industry experience shows a significant negative effect, the impact of directors with business-related degrees though positively linked to the economic value of equity but remained statistically insignificant. With average sampled directors having over 23 years of industry experience, the study concluded that excessive industry knowledge is injurious to financial performance. This is because these directors are perhaps more cautious about their reputation and thus are likely to exhibit diminishing marginal utility for wealth maximization.

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“…For instance, board size and independence and the presence of women on the board are positively related to sustainability disclosures (Chebbi and Amer, 2022;Khemakhem et al, 2022;Suttipun, 2021;Chebbi et al, 2020;Manita et al, 2018).…”

Section: Corporate Governance and The Esg Disclosure-stock Price Cras...mentioning

confidence: 99%

“…However, the standard of information disclosed is impacted by corporate governance (Katmon & Al Farooque, 2017; Li et al, 2018). For instance, board size and independence and the presence of women on the board are positively related to sustainability disclosures (Chebbi and Amer, 2022; Khemakhem et al, 2022; Suttipun, 2021; Chebbi et al, 2020; Manita et al, 2018).…”

Section: Existing Literature and Study Hypothesesmentioning

confidence: 99%

Examining the interplay of sustainable development, corporate governance, and stock Price crash risk: Insights from ESG practices

Chebbi

2023

Sustainable Development

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Amidst the growing emphasis on sustainable development, there is an emerging trend of companies actively pursuing the transition towards sustainability. This shift is driven by various factors, including heightened societal scrutiny and a greater focus on environmental, social, and governance (ESG) considerations. As a result, companies are increasingly acknowledging the significance of incorporating sustainable practices into their operations to align with the expectations of the capital market. This paper investigates the association between ESG disclosures and stock price crash moderated by corporate governance (board size, independence, and gender diversity) for Saudi firms. Using a fixed effects regression method, we find that the coefficient of ESG is significant and negative (−0.0043 for NCSKEW and − 0.0006 for DUVOL) indicating a positive influence of ESG in diminishing stock price crash. The results also show that corporate governance positively and significantly moderate the ESG‐stock price crash risk. As additional analyses, we find a significant negative relationship between each aspect of ESG including social responsibility, environmental activities and governance practices and stock price crash risk. Moreover, the pandemic COVID‐19 has a dampening effect on the ESG‐stock price crash association. To ensure the validity of these conclusions, dynamic GMM models were employed to tackle any potential endogeneity issues, making the results even more robust. Our findings highlight that improving corporate sustainability positively impacts the stability of companies' stock prices. This study provides valuable insights and perspectives from the context of Saudi Arabia and offers theoretical and managerial implications that are relevant for policymakers and investors.

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Gender diversity on board committees and ESG disclosure: evidence from Canada

Cited by 26 publications

References 42 publications

Alternative finance in bank-firm relationship: how does board structure affect the cost of debt?

Alternative finance in bank-firm relationship: how does board structure affect the cost of debt?

Directors’ Diversity and the Economic Value of Equity

Examining the interplay of sustainable development, corporate governance, and stock Price crash risk: Insights from ESG practices

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