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Does genetic diversity on corporate boards lead to improved environmental performance?
journal contribution
posted on 2023-06-10, 06:20 authored by Renatas Kizys, Emmanuel C Mamatzakis, Panagiotis TzouvanasWe study the effects of boards’ genetic diversity on corporate environmental performance. Using a multidimensional information set for 3690 US firms during the period from 2005 to 2019, and three different measures of genetic diversity, we find that, pursuant to the diversity theory, which posits that diversity improves the quality of management decisions and business ethics, genetic diversity leads to improved environmental performance. We also find that genetic diversity improves carbon and governance performance, and ESG disclosure. Particularly, a one percentage point increase in boards’ genetic diversity will increase the carbon performance, measured by the inverse of the carbon emissions to total assets ratio, and environmental performance by 3.54% and 5.57%, respectively. Our results remain robust to different model specifications, while also controlling for endogeneity. In terms of policy implications, results suggest that the key to tackling climate challenges is to promote boards’ genetic diversity.
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Publication status
- Published
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- Published version
Journal
Journal of International Financial Markets, Institutions and MoneyISSN
1042-4431Publisher
Elsevier BVExternal DOI
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84Page range
a101756 1-30Department affiliated with
- Accounting and Finance Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2023-02-27First Open Access (FOA) Date
2023-02-27First Compliant Deposit (FCD) Date
2023-02-26Usage metrics
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