Board gender diversity and corporate environmental commitment: A subnational perspective

Abstract

AbstractWithin the expanding literature on the interplay of corporate governance and corporate environmental behavior, this study introspects the contrastingly reported relationship between board gender diversity (BGD) and corporate environmental commitment (CEC). It empirically explores the moderating effect of coercive (regulation stringency), normative (ethical standards), and mimetic pressures (following of peers), derived from the provincial level isomorphic exhibition of neo‐institutional theory, in the A‐share Chinese listed firms. Apart from confirming the aggregate level positive association between the variables, the findings also highlight the moderating effect of subnational institutional pressures on the relationship. While ruling out the endogeneity and establishing the robustness, the findings imply that the interplay of subnational institutional isomorphism and corporate governance in the case of BGD‐CEC relationship are likely both pertinent and prevalent. Moreover, the increase in BGD enhances the CEC of a firm, subject to the fulfillment of a province's specific boundary conditions, predefined by the unique set of subnational institutional pressures.