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The effect of co-opted boards on corporate carbon performance: Evidence from financially material industries

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  • Develay, Etienne
  • Virk, Nader S.

Abstract

We examine the relationship between co-opted boards and corporate carbon performance. Results show that co-opted boards decrease GHG intensity in financially material industries with no effect in non-financially material industries. For firms in financially material industries, this relationship is time-variant and positive when we interact GHG intensity with R&D investments. This result posits inefficient R&D allocation in the presence of co-opted boards. Our findings bring a more nuanced picture concerning the influence of co-opted boards on corporate carbon performance.

Suggested Citation

  • Develay, Etienne & Virk, Nader S., 2024. "The effect of co-opted boards on corporate carbon performance: Evidence from financially material industries," Economics Letters, Elsevier, vol. 243(C).
    • Handle: RePEc:eee:ecolet:v:243:y:2024:i:c:s016517652400394x
    DOI: 10.1016/j.econlet.2024.111910
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    References listed on IDEAS

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