The Relationship Between Gender Diversity and Employee Representation at Board Level and Non-Financial Performance – A Cross-Country Study
The International Journal of Accounting, Online Ready. Doi.org/10.1142/S1094406020500018
Posted: 11 Jul 2019 Last revised: 13 Apr 2020
Date Written: July 10, 2019
Abstract
This paper examines the relationship between the presence of employee representatives and female directors at board level and a firm’s environmental and corporate social responsibility (CSR) performance. Using an international sample of firms from 23 developed countries between 2001 and 2014, we provide evidence that the presence of labor representatives, and a larger proportion of women as well as female labor representatives at board level are positively related to CSR and environmental performance. Furthermore, we find no substitutional relationship between female board members and labor representation when we include an interaction term between the two. Our findings illustrate that the relevant legislation in some non-Anglo-Saxon countries is beneficial and could be introduced in Anglo-Saxon countries where employee representation rights are limited and female board members are still a minority.
Keywords: Codetermination, Two-tier board system, Gender diversity, Employee representation, Environmental performance, CSR
JEL Classification: J16, Q56, J53
Suggested Citation: Suggested Citation