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Board gender diversity, quotas, and ESG disclosure: Global evidence

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  • Alkhawaja, Abdallah
  • Hu, Fang
  • Johl, Shireenjit
  • Nadarajah, Sivathaasan

Abstract

This study examines the impact of gender-diverse boards and the staggered initiation of gender quotas around the world on environmental, social, and governance (ESG) disclosure. Using a sample of 48 countries from 2005 to 2019, we show a significantly positive relationship between gender-diverse boards and ESG disclosure. This positive effect of gender diversity becomes stronger in countries with weaker stakeholder regimes and information environments, suggesting that those countries can obtain greater benefits by appointing more female directors. Further, using a staggered difference-in-differences design, we document a significant increase in ESG disclosure following the enactment of gender quotas. Overall, our findings demonstrate why gender-diverse boards for corporate social actions are relevant in an international setting.

Suggested Citation

  • Alkhawaja, Abdallah & Hu, Fang & Johl, Shireenjit & Nadarajah, Sivathaasan, 2023. "Board gender diversity, quotas, and ESG disclosure: Global evidence," International Review of Financial Analysis, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finana:v:90:y:2023:i:c:s1057521923003393
    DOI: 10.1016/j.irfa.2023.102823
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    More about this item

    Keywords

    Board gender diversity; ESG disclosure; Stakeholder regimes; Information environments; Quotas;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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