Board Characteristics and Corporate Environmental Performance: A Meta-Analysis

Abstract

Despite a large number of studies examining the relationship between board characteristics and corporate financial performance, there remains a question regarding its effectiveness on the firm’s environmental dimension. Accordingly, we conducted a quantitative meta-analysis examining the relationship between board characteristics and corporate environmental performance. As this performance variable is multi- dimensional, separate meta-analytic reviews were performed for each dimension, namely environmental strengths, environmental concerns, and environmental disclosures. While our findings show positive effects between CEO duality, as well as director interlocks, and environmental concerns, board size and board diversity are positively associated with environmental strengths. Interestingly, we find that board independence and the presence of an environmental committee have positive associations with both environmental strengths and environmental concerns. We draw attention to the need to consider the multi-dimensionality of the environmental performance construct in order to comprehensively evaluate the roles of a board of directors in governing corporate environmental outcomes.