Board Gender Diversity and Corporate Social Performance in Different Industry Groups: Evidence from China

Khwaja Naveed, Cosmina L. Voinea, Zahid Ali, Fawad Rauf and Cosmin Fratostiteanu
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Khwaja Naveed: Faculty of Management, The Open University of The Netherlands, 6401 DL Heerlen, The Netherlands
Cosmina L. Voinea: Faculty of Management, The Open University of The Netherlands, 6401 DL Heerlen, The Netherlands
Zahid Ali: Department of Commerce and Management Sciences, University of Malakand, Dir Lower 18300, Pakistan
Fawad Rauf: Faculty of Management, The Open University of The Netherlands, 6401 DL Heerlen, The Netherlands
Cosmin Fratostiteanu: Faculty of Economics and Business Administration, University of Craiova, 200404 Craiova, Romania

Sustainability, 2021, vol. 13, issue 6, 1-15

Abstract: This paper examines the heterogeneous links between board gender diversity and corporate social performance in different industries across China. OLS regression models are approximated using the data of Chinese industries from 2009 to 2015. Robustness test and two-stage least square (2SLS) methods are incorporated to cater for robustness and endogeneity. Board gender diversity (BGD) stimulates corporate social performance (CSP) of firms with environmental and social risk exposure regardless of critical mass and directors’ independence. It does so for firms with governance risk exposure while incorporating the critical mass effect and the director’s independence. Overall, the positive effect of BGD is prevalent in different industries at an aggregate level while considering firms with an overall ESG risk exposure. The findings imply that BGD can mitigate the ESG risk exposure in terms of enhancing the CSP and the advantage can be transpired with the inclusion of even one female director (independent or executive) to the board. The study also highlights that BGD enhances CSP in industries with more environmental and social risk exposure while doing so in industries with governance risk exposure after complementation by critical mass and independent director effects.

Keywords: corporate social performance; ESG risk exposure; board gender diversity; critical mass theory; director independence; propensity score matching (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:6:p:3142-:d:515996

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