Publication details

The more diverse the board of directors, the greener the company? Evidence from US, European, and Pacific listed companies (UNDER REVIEW)



Year of publication 2024
Type Article in Periodical
Magazine / Source Journal of Management and Governance
MU Faculty or unit

Faculty of Economics and Administration

Keywords board of directors’ composition, resource management, emission management, environmental innovation, environmental performance, fixed effects panel regression
Description The board of directors plays an essential role in corporate environmental governance. This study investigates the effect of the board of directors’ attributes on a company’s overall environmental performance and the individual constituents of that performance (resource use management, emission management, environmental innovations), focusing on US, European, and Pacific listed companies in 2015–2022. The study employs two-way fixed effects panel linear regression to examine datasets of 498 US, 321 European, and 267 Pacific nonfinancial companies listed in MSCI indices. The results suggest that monistic board structure has a negative effect on environmental performance in all regions. Additionally, the results reveal the significant effect of board gender diversity and member compensation for US companies, board size and board member affiliations for European companies, and board member affiliations and tenure for Pacific companies. The study shows heterogeneous results among the examined regions, which indicates that board attributes that are effective in one region might not produce the expected outcome in a different region.
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