Publication details
Does Context Matter? ESG-Contingent Effects of Board Cultural Diversity on Corporate Capital Investments
| Authors | |
|---|---|
| Year of publication | 2025 |
| Type | Article in Periodical |
| Magazine / Source | Corporate Social Responsibility and Environmental Management |
| MU Faculty or unit | |
| Citation | |
| web | https://onlinelibrary.wiley.com/doi/10.1002/csr.70175 |
| Doi | https://doi.org/10.1002/csr.70175 |
| Keywords | board cultural diversity; net investment ratio; capital expenditures; ESG performance; moderating effect; upper echelons theory; resource dependence theory; institutional theory |
| Attached files | |
| Description | This study investigates how board cultural diversity and the moderating role of ESG performance affect corporate capital investment activity, proxied by the net investment ratio, in European listed non-financial companies in 2014–2023. It explores these dynamics considering institutional differences across Anglo-Saxon, continental, and Nordic countries. Leveraging a unique balanced panel dataset comprising 5,620 firm-year observations, it employs two-way fixed effects panel regressions and uses system GMM estimations to address endogeneity concerns. The results indicate that ESG significantly attenuates the positive relationship between board cultural diversity and capital investment activity. Comparative analysis reveals that the strength and direction of these effects are contingent on institutional context. This study contributes to the corporate governance literature with empirical insights into how board cultural diversity and ESG performance jointly shape corporate investment behaviour. It also advances the upper echelons, resource dependence, stakeholder and institutional theories and provides policymakers with holistic guidance. |