Nexus between corporate environmental disclosures and gender diversity: Interaction effects of board independence

Abstract

AbstractThis study examines the impact of gender diversity (GD) in the board of directors on corporate environmental disclosures (ED). It develops an integrative theoretical framework to explore diverse facets of the nexus of GD and ED. Using Indian‐listed firms for a sample period of 2015 to 2021, panel models have been used to validate the theoretical assumptions of the study. The empirical results reveal that women directors improve ED. Moreover, the role of women in driving environmental disclosure becomes evident only after achieving a critical mass of three directors. Our research contributes to the literature using board independence as moderator, for the first time in this context, and it was found that it moderates GD–ED relationship significantly. The findings could be beneficial for policymakers and regulators to recognize how GD is vital to firms to achieve best environmental practices. More initiatives may be deployed to reinforce women's representation in boardrooms for enhancing ED. Our study is one of the foremost studies to examine the impact of board GD on ED based on gender socialization, critical mass, and resource dependency theoretical framework.