Do women on corporate boards influence corporate social performance? A control function approach

Rey Dang, L'Hocine Houanti, Jean-Michel Sahut and Michel Simioni

Finance Research Letters, 2021, vol. 39, issue C

Abstract: We examine if women on corporate boards (WOCB) influence a firm's corporate social performance (CSP). To do this, we utilize stakeholder theory. From an empirical standpoint, we use the control function (CF) approach suggested by Wooldridge (2015), which takes into account the issue of endogeneity raised in the literature (namely, omitted variables, reverse causality, and dynamic endogeneity). Using a sample of firms from the S&P 500 between 2004 and 2015, we find that WOCB have a positive and significant effect (at the 5% level) on CSP. We compare our results to more traditional approaches (pooled OLS, the fixed-effects model, and system GMM). We shed light on an issue that is still considered controversial (Byron and Post, 2016).

Keywords: Women on corporate boards; Corporate social responsibility; Corporate social performance; Institutional theory; Control function (search for similar items in EconPapers)
JEL-codes: C58 G34 M14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:39:y:2021:i:c:s1544612319315065

DOI: 10.1016/j.frl.2020.101645

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