Board Gender Diversity, Extractive Industries, and Corporate Carbon Commitment

• In Event: Human Capital Issues in Accounting

Abstract

The study examines whether board gender diversity is associated with corporate carbon commitment and explores whether the association varies between firms operating in the extractive and non-extractive industries. Based on insights drawn from gender socialization, resource dependence, and critical mass theories, we develop models that link board gender diversity with corporate carbon commitment. Analyzing data obtained from S&P1500 firms for the period 2015 to 2019, we find that higher representation of women on a company’s board is positively associated with the firm’s carbon commitment and that the association is more pronounced for firms in the extractive industries. Furthermore, a nominal appointment of women on boards of directors reduces the likelihood of a firm’s carbon commitment being at a given or higher level while the appointment of a ‘critical mass’ of women to the board increases the firm’s inclination toward higher carbon commitment. Our findings suggest that regulatory and policymaking agencies could exploit legislative and policy initiatives that would promote board gender diversity to encourage corporates, especially those operating in the extractive industry group, to commit to the climate change cause.

Authors

• Tesfaye T Lemma, Towson University

• Mohammad Tavakolifar, Northeastern Illinois University

• Dessalegn Mihret, RMIT University

• Grant Samkin, University of South Africa