Gender diversity of senior management teams and corporate innovation efficiency: Evidence from China

Abstract

The world economy is now trending toward a green economy as a kind of sustainable growth. This research uses Chinese A-share listed companies between 2011 and 2021 to analyze the impact of gender diversity on corporate innovation in the boardroom. We find that the presence of women on boards has a favorable impact on both the quantity and quality of green innovations. The role of research and development (R&D) and government funding (government support) as intermediate mechanisms strengthen the connection between women on boards and corporate innovation. Heterogeneous investigations further demonstrate the importance of ESG maturity, gender diversity on corporate boards, and size of business in fostering corporate innovation. The research lends theoretical support to the shift in corporate strategy thinking necessitated by the increased representation of women in senior positions and also gives empirical evidence for the growth of environmentally friendly innovations.