Board gender diversity and environmental performance: A semi-parametric panel data analysis

Rey Đặng, Majdi Karmani, L'Hocine Houanti, Michel Simioni and Ilyes Abid

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: Using Baltagi and Li's (2002) semi-parametric panel fixed effects model, this article investigates the effect of board gender diversity (BGD) on a firm's environmental performance (EP) in a sample of firms from the 2020 Fortune 1000 Index over the 2004–2020 period. We address the endogeneity issue via a control function. Contrary to the existing literature, we find an inverted U-shaped BGD-EP relationship with a turning point. Similarly, we show that this relationship is endogenous and dynamic by nature. Overall, we find a curvilinear relationship (inverted U-shape) between BGD and EP, thereby supporting the “too-much-of-a-good-thing” (TMGT) effect (Pierce and Aguinis, 2013).

Keywords: Board gender diversity; Corporate social performance; Environmental performance; Semi-parametric regression; Panel data (search for similar items in EconPapers)
JEL-codes: B23 C14 G34 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s154461232300404x

DOI: 10.1016/j.frl.2023.104032

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