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Board gender diversity and sustainability performance: Nordic evidence

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  • Ishwar Khatri

Abstract

This study investigates the relationship between board gender diversity and sustainability performance using a sample of 205 Nordic‐listed firms across countries Denmark, Finland, Norway, and Sweden over the period 2002–2020. Drawing on gender social role theory and upper echelons theory, our results show a positive and significant association between board gender diversity and sustainability performance. Furthermore, the study extends the finding indicating that a “critical mass” of at least 30% of women on boards is required to have a significant effect on sustainability performance. The study also reveals that the association between board gender diversity and sustainability performance is more pronounced in the carbon‐intensive industry subsample. Therefore, our study, amidst inconsistent board gender diversity and firm performance studies, suggests increasing the “critical mass” of women on boards to have a positive effect on sustainability performance.

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  • Ishwar Khatri, 2023. "Board gender diversity and sustainability performance: Nordic evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1495-1507, May.
    • Handle: RePEc:wly:corsem:v:30:y:2023:i:3:p:1495-1507
    DOI: 10.1002/csr.2432
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    6. Hu, Jiamin & Li, Kailun & Xia, Yifei & Zhang, Jianing, 2023. "Gender diversity and financial flexibility: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 90(C).
    7. Khaoula Aliani & Fadhila Hamza & Noha Alessa & Hela Borgi & Khaldoon Albitar, 2024. "ESG disclosure in G7 countries: Do board cultural diversity and structure policy matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3031-3042, July.

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