Board gender diversity and environmental disclosure: evidence from the banking sector

• Published in: Journal of Chinese economic and foreign trade studies Vol. 15; no. 3; pp. 350 - 371
• Main Authors: Buallay, Amina, Alhalwachi, Layla
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Publishing Limited 01.11.2022; Emerald Group Publishing Limited
• Subjects: Accounting; Annual reports; Banking; Banking industry; Banks; Boards of directors; Corporate governance; Disclosure; Economic activity; Economic crisis; Economic growth; Environmental policy; Ethics; Gender; International finance; International organizations; Literature reviews; Random effects; Regulation of financial institutions; Reputations; Women; Oil countries; Board gender diversity; Environmental disclosure
• ISSN: 1754-4408; 1754-4416; 1754-4408
• DOI: 10.1108/JCEFTS-08-2021-0046

Purpose This study aims to examine the relationship between board gender diversity and environmental disclosure (ED) in the banking sector. Design/methodology/approach Data pooled from Bloomberg database on 2,116 banks from the period of 2007 to 2016 ends up with 7,951 observations. Panel regression model that include random effects was used to test study hypothesis. Findings The findings showed that when female board members were between 21% and 50%, it had a significant positive effect on the ED disclosure. Furthermore, the results showed that bank located in non-OPEC countries have better gender diversity in their board and greater ED than non-OPEC countries. Moreover, the results demonstrated that the board diversity and ED are better in banks that are located in countries that ranked 26–50 in oil production. Originality/value Although findings of this research clearly discussed the importance of board diversity in enhancing ED, the results of this study give us a crucial signal as a wake-up call for regulators to start considering women quota on board for higher ED.