Abstract
We investigate whether female executives influence corporate environmental management (green management). Based on a difference-in-difference approach, our study provides evidence that female CFOs conduct more environmentally responsible activities, and the effects are more prominent when firms are of high risks. Female CFOs are more likely to involve in environmental management voluntarily. Further, environmental management improves firm performance such as debt cost saving. This research advances the gender diversity literature and suggests that female executives play an important role in corporate decisions and firm performance.
Highlights
Firm Environmental Management: Environmental management has gained significant popularity recently for practitioners, academics, and policymakers
Our results demonstrate that the executive gender effects on environmental management are stronger when one state does not pass the constituency statutes
Based on the identified differences in risk aversion, ethics, and nature closeness, we propose our first hypothesis, which is that female CFOs would pay more attention to corporate environmental management
Summary
Firm Environmental Management: Environmental management (green management) has gained significant popularity recently for practitioners, academics, and policymakers. With the rising recognition of environmental fragility and global warming concerns, firms pay close attention to environmentally responsible activities that go beyond the compliance of regulations and laws [1]. Firms with environmental issues are found to experience a higher cost of capital due to potential regulatory, compliance, and litigation risks [2]. Firms with responsible environmental performance are associated with better performance [4,5,6], higher resource efficiency [7], lower cost of capital [2,8,9] and larger stock returns [10]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
