Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2090406
Board diversity and firm performance: impact of ESG activities in China
Yao Dong
Chen Liang
Zhong Wanyin
Sažetak
The investigation of association between board diversity and the
firm performance is the subject of many studies. However, the
empirical results presented in the extant literature are inconclusive
at best. The inconclusive empirical results could be due to
several factors and one of them could be that the relationship is
contingent on some key factors. Given the rising trend of
Environmental, Social and Governance (ESG) activities, in this
paper the relationship between board diversity and the firm performance
is tested in the context of ESG activities. The subject of
examination in this study is the listed Chinese firms. The sample
period spans for 6 years and is collected from 2014 to 2019. This
work uses a dynamic approach to modelling relationships. The
generalised method of moments (GMM) is used in a two-step system.
An endogeneity-free estimate may be achieved by using this
strategy. We can learn a great deal from these hypotheses. There
is a positive and substantial correlation between board diversity
and the firm’s success, which suggests that diverse boards are
beneficial to businesses. Both ESG activities and a positive coefficient
on company performance are significant. This shows investors
appreciate companies that are involved in ESG activities
because they see this as an investment that pays off. Last but not
least, the report shows that board diversity has a negative and
considerable impact on ESG efforts. According to the results,
board diversity and ESG efforts are not necessary for a company’s
success. According to the data, board diversity is not particularly
beneficial in the context of significant ESG initiatives. Board diversity
really hurts a company’s success when it engages in high ESG
activities. The study also discusses the work’s policy ramifications.
Finally, the work lays out a clear path for further study.
Ključne riječi
Board diversity; ESG activities; firm performance
Hrčak ID:
304180
URI
Datum izdavanja:
31.3.2023.
Posjeta: 1.179 *