Effects of board gender diversity and sustainability committees on environmental performance: a quantile regression approach

Abstract

AbstractThis study examines the effect of board gender diversity (BGD) and sustainability committees on environmental performance. Using a quantile regression approach and a sample of publicly listed firms in Italy, we find that BGD and sustainability committees have different effects on firms' environmental performance over different points of conditional distribution. This shows that BGD and sustainability committees have greater quantitative impact in firms performing better environmentally and are positively related to environmental performance. We further discover that large Italian firms that reach a critical mass of three female directors maintain a stronger attitude towards environmental sustainability. Overall, the results confirm that BGD and sustainability committees enhance board effectiveness and help promote sustainable environmental initiatives. This study provides empirical evidence from a context that has not yet been investigated. It further augments the literature by employing a quantile regression approach, mostly unexamined by previous studies.