Board Gender Diversity and Environmental, Social, and Governance (ESG) Disclosure in Developed Countries

Chinonyerem Matilda Omenihu (), Madina Abdrakhmanova () and Dimitrios N. Koufopoulos
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Chinonyerem Matilda Omenihu: Department of Finance, Accounting and Risk, Glasgow Caledonian University, Glasgow G4 0BA, UK
Madina Abdrakhmanova: Department of Finance, Accounting and Risk, Glasgow Caledonian University, Glasgow G4 0BA, UK
Dimitrios N. Koufopoulos: Global Online MBA Program, University of London Worldwide, London WC1E 7HU, UK

Administrative Sciences, 2025, vol. 15, issue 4, 1-26

Abstract: This paper examines the relationship between board gender diversity and Environmental, Social, and Governance (ESG) disclosure in developed economies. Using a sample of forty-five firms across developed countries between 2012 and 2023, the analysis employs Bloomberg’s ESG disclosure score as a proxy. In terms of methodology, both pooled ordinary least squares (OLS) and fixed effects regression models are employed. However, to mitigate potential endogeneity concerns, the study employs an instrumental variable approach and dynamic panel regression techniques to provide robust causal inference. The findings offer two significant insights. In accordance with critical mass theory, firms with a minimum of three female directors demonstrate a significant positive relationship between board gender diversity and ESG disclosure. This indicates that achieving a critical level of female representation is essential for fostering meaningful improvements in ESG disclosure scores. Second, firms with merely one or two female directors, often considered token representation, exhibit a negative significant impact on ESG disclosure. Additionally, within the UK context, board gender diversity is positively associated with ESG disclosure, suggesting that institutional frameworks and regulatory environment shape this relationship.

Keywords: board gender diversity; ESG disclosure; critical mass theory (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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