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Does a Female Director in the Boardroom Affect Sustainability Reporting in the U.S. Healthcare Industry?

Author

Listed:
  • Hani Alkayed

    (Department of Accounting, Faculty of Administrative & Financial Sciences, University of Petra, Amman 11196, Jordan)

  • Esam Shehadeh

    (Department of Accounting, Faculty of Administrative & Financial Sciences, University of Petra, Amman 11196, Jordan)

  • Ibrahim Yousef

    (Department of Financial Technology, Faculty of Administrative & Financial Sciences, University of Petra, Amman 11196, Jordan)

  • Khaled Hussainey

    (Department of Accounting and Finance, Faculty of Business and Law, University of Portsmouth, Portsmouth PO1 3DE, UK)

Abstract

In this in-depth study, we explored the nuanced dynamics of boardroom gender diversity and its consequential impact on sustainability reporting within the U.S. Healthcare sector. Leveraging a comprehensive dataset from Refinitiv Eikon, our analysis spanned a spectrum of 646 observations across 57 healthcare entities listed in the S&P 500, covering the period from 2010 to 2021. Our methodology combined various empirical techniques to dissect correlations, unravel heterogeneity, and account for potentially omitted variables. Central to our findings is the discovery that various metrics of board gender diversity, such as the proportion of female directors and the Blau and Shannon diversity indices, exhibit a robust and positive correlation with the intensity and quality of sustainability reporting. This correlation persists even when controlling for a multitude of factors, including elements of corporate governance (such as board size, independence, and meeting attendance), as well as intrinsic firm characteristics (such as size, profitability, growth potential, and leverage). The presence of female directors appears to not only bolster the breadth and depth of sustainability reporting but also align with a broader perspective that their inclusion in boardrooms significantly influences corporate reporting practices. These insights extend beyond academic discourse by offering tangible and actionable intelligence for policymakers and corporate decision-makers. By elucidating the intrinsic value of gender diversity in governance, our study contributes a compelling argument for bolstering female representation in leadership roles as a catalyst for enhanced corporate responsibility and stakeholder engagement.

Suggested Citation

  • Hani Alkayed & Esam Shehadeh & Ibrahim Yousef & Khaled Hussainey, 2024. "Does a Female Director in the Boardroom Affect Sustainability Reporting in the U.S. Healthcare Industry?," JRFM, MDPI, vol. 17(2), pages 1-20, January.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:2:p:49-:d:1327424
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    References listed on IDEAS

    as
    1. Mohamed H. Elmagrhi & Collins G. Ntim & Ahmed A. Elamer & Qingjing Zhang, 2019. "A study of environmental policies and regulations, governance structures, and environmental performance: The role of female directors," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 206-220, January.
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