A Study of Environmental Policies and Regulations, Governance Structures and Environmental Performance: The Role of Female Directors

Business Strategy and the Environment, 2018

30 Pages Posted: 1 Nov 2018

See all articles by Mohamed Elmagrhi

Mohamed Elmagrhi

University of Huddersfield, Huddersfield Business School, Queensgate, Huddersfield, HD1 3DH; Swansea University, School of Management; University of Huddersfield - Business School

Collins G. Ntim

University of Southampton Business School, UK; University of Southampton

Ahmed A. Elamer

Brunel University London - Brunel Business School; Department of Accounting, Faculty of Commerce, Mansoura University

Qingjing Zhang

University of Southampton - Southampton Business School

Date Written: October 10, 2018

Abstract

This paper seeks to contribute to the existing business strategy and the environment literature by examining the effect of governance structures on environmental performance within a unique context of improving environmental governance, policies, regulations and management. Specifically, we investigate the extent to which corporate board gender diversity, including the proportion, age and level of education of female directors, affect environmental performance of Chinese publicly listed corporations. Using one of the largest Chinese datasets to-date, consisting of a sample of 383 listed A-shares from 2011 to 2015 (i.e., observations of 1,674), our findings are three-fold. First, we find that the proportion and age of female directors have a positive effect on the overall corporate environmental performance. Second, our findings indicate that the proportion and age of female directors also have a positive effect on the three individual environmental performance components, namely environmental (i) strategy, (ii) implementation and (iii) disclosure, respectively. Finally, and by contrast, we do not find any evidence that suggests that the level of education of female directors has any impact on environmental performance, neither the overall environmental performance measure nor its individual components. Our findings have important implication for regulators and policy-makers. Our evidence is robust to controlling for alternative measures, other governance and firm-level control variables, and possible endogeneities. We interpret our findings within a multi-theoretical framework that draws insights from agency, legitimacy, neo-institutional, resource dependence, stakeholder, and tokenism theoretical perspectives.

Keywords: Business Strategy; Environmental Policies and Regulations; Environmental Management and Sustainable Development; Governance Structures; Environmental Performance; Corporate Board Gender Diversity/Female Directors; China

Suggested Citation

Elmagrhi, Mohamed and Elmagrhi, Mohamed and Ntim, Collins G. and Elamer, Ahmed Ahmed and Zhang, Qingjing, A Study of Environmental Policies and Regulations, Governance Structures and Environmental Performance: The Role of Female Directors (October 10, 2018). Business Strategy and the Environment, 2018, Available at SSRN: https://ssrn.com/abstract=3264000

Mohamed Elmagrhi (Contact Author)

Swansea University, School of Management ( email )

Bay Campus
Skewen
Swansea, SA1 8EN
United Kingdom
07455392947 (Phone)

University of Huddersfield, Huddersfield Business School, Queensgate, Huddersfield, HD1 3DH ( email )

HD1 3DH
United Kingdom
07455392947 (Phone)

University of Huddersfield - Business School ( email )

Queensgate
Huddersfield HD1 3DH
United Kingdom

Collins G. Ntim

University of Southampton Business School, UK ( email )

Southampton Business School
Highfield
Southampton, England SO17 IBJ
United Kingdom
+44 (0) 238059 4285 (Phone)
+44 (0) 238059 3844 (Fax)

HOME PAGE: http://www.southampton.ac.uk/business-school/about/staff/cgn1n11.page

University of Southampton ( email )

Southampton, SO17 1BJ
United Kingdom

Ahmed Ahmed Elamer

Brunel University London - Brunel Business School ( email )

Kingston Lane
Eastern Gateway Building
Uxbridge, Middlesex UB8 3PH
United Kingdom

Department of Accounting, Faculty of Commerce, Mansoura University ( email )

Faculty of Commerce, Mansoura University
Elgomhouria St.
Mansoura, Mansoura 35516
Egypt

Qingjing Zhang

University of Southampton - Southampton Business School ( email )

SO17 1BJ
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
92
Abstract Views
1,595
Rank
527,782
PlumX Metrics