Does duration of team governance decrease corporate carbon emission intensity

Abstract

AbstractThe study explores the effects of duration of team governance (DTG) on carbon emission intensity of 608 U.S. listed corporations merged three official datasets of Carbon Disclosure Project (CDP), Compuatat and BoardEx over the period 2009–2018, using unbalanced panel data analysis. It bridges three theoretical approaches: group development theory (GDT), social identity theory (SIT) and resource dependence theory (RDT) and applies econometric analysis techniques to investigate corporate carbon emission intensity. The result shows an inverted U‐shaped relationship between DTG and carbon emission intensity. It is interesting that carbon emission intensity increased when the duration is less than 6.52 years, however, the duration exceeds 6.52 years decreases carbon emission intensity. We also find other factors of team size and gender diversity moderate the U‐shaped relationship, further testing the optimal team of 8–11 members and 3–4 women members. Meanwhile, the finding shows that the low‐carbon innovation is an effective mediator for DTG to decrease carbon emission intensity. The paper is important for managerial implication and policy making.