Toward sustainable corporate behavior: The effect of the critical mass of female directors on environmental, social, and governance disclosure

Masi, Sara De; Słomka‐Gołębiowska, Agnieszka; Becagli, Claudio; Paci, Andrea

doi:10.1002/bse.2721

Cited by 113 publications

(102 citation statements)

References 92 publications

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“…However, Manita et al (2018) observed that when two, three or more women are appointed to a board, firms tend to be more transparent, providing increasing ESG disclosure levels. Similarly, in the Italian context, De Masi et al (2021) used a sample of the FTSE-MIB companies over the 2005–2017 period and found that women's presence on boards positively influenced ESG disclosure only if the critical mass was reached. They also proved that the contribution of women is null when the board includes only one or two women.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable corporate governance and non-financial disclosure in Europe: does the gender diversity matter?

Nicolò

Zampone

Sannino

et al. 2021

JAAR

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PurposeRecent regulatory changes in Europe have promoted non-financial reporting practices (e.g., Directive, 2014/95/EU) and gender diversity in decision-making positions. Special attention is devoted to promoting the gender balance on corporate boards as a key mechanism to enhance corporate governance effectiveness and better address multiple stakeholders' needs. With this in mind, this study intends to examine the impact of boardroom gender diversity on Environmental Social Governance (ESG) disclosure practices in the European listed firms' context.Design/methodology/approachThe study applies different panel data models on an extended sample of 1,392 firms from 21 European Union (EU) countries for six years (2014–2019).FindingsFindings allow to spotlight the positive role exerted by the presence of women directors on the boards in enhancing ESG disclosure, both at the overall and specific (individual ESG scores) level.Research limitations/implicationsPolicymakers and regulators might consider the study's evidence as a stimulus to continue in promoting strategic actions and reforms that foster gender equality and balance in corporate decision-making positions.Practical implicationsCreating a heterogeneous and diversified board of directors may support implementing a “sustainable corporate governance” recently claimed by the EC.Originality/valueThe study contributes to the literature by disentangling the links between gender diversity and ESG disclosure over a period that covers a long season of European regulations and measures that affected both non-financial reporting practices and the board of directors' composition. Accordingly, it can contribute to enhancing the practical and theoretical understanding of the pivotal role that gender diversity may exert in strengthening corporate governance and, in turn, corporate transparency and accountability behaviours about non-financial issues.

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Section: Literature Reviewmentioning

confidence: 99%

Sustainable corporate governance and non-financial disclosure in Europe: does the gender diversity matter?

Nicolò

Zampone

Sannino

et al. 2021

JAAR

View full text Add to dashboard Cite

show abstract

“…Additionally, governance information accounts for the largest part of ESG disclosure, followed by social and environmental information. More recently, many studies (Manita et al , 2018; Arayssi et al , 2020; Shakil, 2021; De Masi et al , 2021) have explored the impact of different corporate governance mechanisms on ESG disclosure. There is no consensus in the results, and the evidence is mixed, with the association having been found to be positive, negative or neutral.…”

Section: Introductionmentioning

confidence: 99%

Impact of ESG disclosure and financial reporting quality on investment efficiency

Ellili

2022

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Purpose This study aims to examine the impacts of environmental, social and governance (ESG) disclosure and financial reporting quality (FRQ) on investment efficiency. Design/methodology/approach Several econometric models have been applied to estimate the impacts of ESG disclosure and FRQ on investment efficiency, using the United Arab Emirates (UAE) as a sample in 2010–2019. Estimations considered subsamples of underinvestment, overinvestment and low and high FRQ values. Findings Empirical results show a positive relationship between ESG disclosure, FRQ and investment efficiency, and that this relationship is more important in the underinvestment and high FRQ sub-samples. Results suggest that ESG disclosure improves transparency, mitigates information asymmetry and enhances investment efficiency. Research limitations/implications The findings could help UAE regulators incorporate ESG information into reporting and implement effective mechanisms to increase the extent of ESG information to improve investment efficiency. This study only examined UAE traded companies. Future research should investigate other factors influencing investment efficiency and conduct comparative studies across Gulf Cooperation Council countries. Social implications This study reveals the significant positive impact of ESG disclosure and FRQ on investment efficiency. These findings will help companies optimize their ESG information disclosure, improve the quality of their financial reports and comply with ESG standards. The study aims to develop knowledge that will not only benefit companies regarding the potential impact of ESG disclosure but also help national and international society create a better social environment and reduce climate change. Originality/value To the best of the authors’ knowledge, this study is the first to examine the relationship between ESG disclosure, FRQ and corporate investment efficiency. The research contributes to understanding the financial impacts of ESG disclosure and FRQ and supports regulators’ efforts to enforce ESG disclosure and improve FRQ.

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“…Based on the huge financial investment required in attaining the SDGs, the crucial role that firms can play in facilitating and directly pushing for progress with the goals turns out to be even much stronger (Lashitew, 2021; Nwagwu, 2020). As a consequence, several countries and companies are progressively implementing various carbon‐related policies to reduce carbon footprints (Baboukardos, 2018; Baboukardos et al, 2021; de Masi et al, 2021; Gerged et al, 2021; Haque & Ntim, 2018). For instance, in the United Kingdom, the Department for Environment, Food and Rural Affairs (DEFRA) acting on behalf of the government issued guidelines on the measurement and reporting of GHG emissions in 2009.…”

Section: Introductionmentioning

confidence: 99%

Executive compensation and sustainable business practices: The moderating role of sustainability‐based compensation

2021

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This study seeks to contribute to the extant business strategy and the environment literature by investigating the effect of CEO pay and executive compensation (EC) on sustainable business practice (SBPs). It also distinctively ascertains whether the payfor-sustainability sensitivity (PSS) is reinforced in firms with sustainability-based compensation (SBC) policy. Using a sample of 262 UK listed firms from 2009 to 2018, our findings are threefold. First, the findings reveal that both CEO pay and EC variables have positive effect on all SBP measures, except CO 2 reduction performance where the link is negative. Second, the study shows that the PSS is reinforced for firms that implement SBC policy. Finally, we detect that both the PSS and the moderation effect of SBC on the PSS are higher in the symbolic construct of SBPs than the actual measures. The results support insights drawn from neo-institutional theory. The findings have key implications for regulators and policy makers.

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Toward sustainable corporate behavior: The effect of the critical mass of female directors on environmental, social, and governance disclosure

Cited by 113 publications

References 92 publications

Sustainable corporate governance and non-financial disclosure in Europe: does the gender diversity matter?

Sustainable corporate governance and non-financial disclosure in Europe: does the gender diversity matter?

Impact of ESG disclosure and financial reporting quality on investment efficiency

Executive compensation and sustainable business practices: The moderating role of sustainability‐based compensation

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