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Top management team functional diversity and ESG performance

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  • Zhang, Yanan
  • Zhang, Xiaoyu

Abstract

This paper investigates the effect of top management team (TMT) functional diversity on ESG performance, utilizing data from Chinese A-share listed companies spanning 2009 to 2022. The study finds that TMT functional diversity positively influences ESG performance, with this positive impact predominantly observed in non-state-owned enterprises, firms from low pollution industry, and those with better external governance. Further analysis indicates that improvements in green management innovation and green technology innovation serve as underlying mechanisms.

Suggested Citation

  • Zhang, Yanan & Zhang, Xiaoyu, 2024. "Top management team functional diversity and ESG performance," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003921
    DOI: 10.1016/j.frl.2024.105362
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    More about this item

    Keywords

    TMT functional diversity; ESG performance; Green management innovation; Green technology innovation;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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