How do women on corporate boards shape corporate social performance? Evidence drawn from semiparametric regression

Abstract

This study reexamines the relationship between women on corporate boards (WOCB) and corporate social performance (CSP) using a sample of companies from the Fortune 1000 (ranked from 501 to 1000) from 2004 to 2018. To take into account the complex and nonlinear relationship, as well as endogeneity issues, we use a two-stage, generalized-additive model (2SGAM). This contribution is significant because many authors have demonstrated the non-linearity of factors influencing performance, whether of a financial or social nature. Con-sistent with token and critical mass theories, our results shows that the effects of WOCB on CSP vary significantly depending on the number of women; also, there are departures from linearity. Our findings provide explanations for the existing mixed empirical results, which all rely on parametric methods. We suggest the use of semiparametric methods taking into ac-count endogeneity issues to assess the WOCB-CSP relationship. This study sheds some new light on that relationship, which remains a controversial issue.

The Influence of Family Control and Gender Diversity on Financial Performance: Leverage and Tangibility as Mediating Role

“…Gender diversity is characterized by the presence of women directors on the board who actively engage in decision-making processes and have an influence on business strategy and policy (Torchia et al, 2011). Multiple scholarly investigations have shown a correlation between the presence of female directors and enhanced financial performance, financing strategies, and commitment to corporate social responsibility (Cambrea et al, 2020;Đă ng et al, 2022;Poletti-Hughes & Martinez Garcia, 2022). To assess the presence of female directors, a binary variable is used, denoted as Criterion 1, which takes a value of 1 if the business has at least one female director and 0 if it does not.…”

ESG Leaders or Laggards? A Configurational Analysis of ESG Performance

“…Despite the evidence of female board representation being positively related to ESG performance, there are also studies that find no significant relationships (Galbreath, 2012) even when there is a critical mass of three (Đặng et al, 2022). Consistent with our configurational framework, Byron and Post (2016) show that whether or not a female representation on the board is positively related to engagement in ESG-type activities is contingent on institutional conditions.…”