Board Gender Diversity and Voluntary Carbon Emission Disclosure

In this study, we investigate the effect of board gender diversity on the decision to disclose carbon emissions voluntarily. Using an international sample consisting of 22,841 firm-year observations from 38 countries for the period 2010-2019, we determine the existence of a positive relationship between the percentage of female directors on the board and carbon disclosure. This evidence supports agency and resource dependency theories, as a gender diverse board indicates strong governance and better communication among stakeholders. Additionally, we examine the moderating effect of gender quotas across sample countries, where either soft or hard quotas have been implemented. We show that the number of firms disclosing their carbon emissions is, on average, higher in countries with either hard or soft quotas than in countries with no quota. Moreover, the positive effect of board gender diversity on voluntary carbon emission disclosure is similar across firms in countries with quotas and without quotas. The reported results demonstrate that there seems to be no need for country-level strict regulations regarding the firm-level percentage of female representation on the board to be effective, as gender board diversity in countries with no quotas has a similar effect in explaining voluntary carbon disclosure as in countries with quotas and those changing to quota regulation.