The effect of co-opted boards on corporate carbon performance: Evidence from financially material industries

Etienne Develay and Nader S. Virk

Economics Letters, 2024, vol. 243, issue C

Abstract: We examine the relationship between co-opted boards and corporate carbon performance. Results show that co-opted boards decrease GHG intensity in financially material industries with no effect in non-financially material industries. For firms in financially material industries, this relationship is time-variant and positive when we interact GHG intensity with R&D investments. This result posits inefficient R&D allocation in the presence of co-opted boards. Our findings bring a more nuanced picture concerning the influence of co-opted boards on corporate carbon performance.

Keywords: Co-opted boards; Carbon performance; GHG intensity; Financial materiality; Corporate governance (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:243:y:2024:i:c:s016517652400394x

DOI: 10.1016/j.econlet.2024.111910

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