Are women greener? Board gender diversity and corporate green technology innovation in China

Abstract

This article investigates how board gender diversity impacts corporate green technology innovation, and whether regional gender contexts as well as corporate financial constraints moderate this relationship. Using a panel of 20,834 firm-year observations of China, the results indicate a statistically significant positive association between board gender diversity and corporate green technology innovation. Specifically, the study finds that boards with three or more female directors have a stronger positive effect on green technology innovation than boards with two or fewer female directors, in line with the critical mass theory. Besides, the result shows that the effect of female executive directors outweighs that of female independent directors. Further, the positive association between female directors and green technology innovation is found to be more pronounced in firms located in regions with higher levels of gender equality and higher proportions of women in politics, while financial constraints act to alleviate the extent of the positive relationship. Additionally, female directors play a potent role in reducing corporate carbon emissions, particularly for high-polluting firms and those located in regions with stricter environmental regulation. The key results remain unchanged after correcting for endogeneity concern. Overall, this study has substantial practical implications and provides valuable insights for managers and policymakers regarding the contribution of female leadership in enhancing corporate environmental performance.