Gender Diversity, Board Interlocks and Environmental Performance
Abstract
My dissertation consists of three studies that investigate gender diversity, board interlocks, and environmental performance.
In the first study, I investigate whether gender diversity is related to firms’ environmental performance. Built on resource dependence theory, I argue that compared to male directors, female directors provide different human resources. Thus, gender diversity in the boardroom leads to better environmental performance by providing a greater pool of resources. Using a sample of S&P 1500 firms in the US between 2009 and 2012, I find a positive relationship between gender diversity and environmental performance using regressions. This study provides a recent snapshot of gender diversity practice and firms’ environmental performance after Sarbanes-Oxley and the 2007-2008 financial crisis, using a much larger sample size than previous research.
In the second study, I delve deeper into the relational dimension of corporate governance, specifically the link between board interlocks and environmental performance. Social network theory argues that an organization’s outcome is affected by its position in the network and board interlocks create channels for sharing of information between firms. Using the same sample as study No. 1, I find an interesting phenomenon that board interlocks serve as channels of information diffusion that result in good environmental performance, but poor environmental performing firms do not share information as much. This study provides empirical evidence that board interlocks serve an information filtering function depending on directors’ values alignment.
In my last study, I test the link between board interlocks, the interlocking directors’ sustainability-related human and social capital, and environmental performance. I combine resource dependence theory and social network theory, which suggest that board interlocks serve as effective channels of sharing information and the interlocking directors’ experiences play a role in the process of diffusion. Using regressions, I find that both interlocking directors’ sustainability-related human and social capital contribute to environmental performance positively. My work responds to numerous research studies that call for empirical evidence of the relationship among board interlocks, interlocking directors’ characteristics, and organizational outcomes.
Description
Keywords
Accounting
Citation
Lu, J. (2016). Gender Diversity, Board Interlocks and Environmental Performance (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/26262