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

See all articles by Kerstin Lopatta

Kerstin Lopatta

University of Hamburg - Faculty of Business, Economics, and Social Sciences

Katarina Böttcher

University of Oldenburg

Sumit Lodhia

University of South Australia

Sebastian A. Tideman

University of Hamburg; Syracuse University

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

Lopatta, Kerstin and Böttcher, Katarina and Lodhia, Sumit and Tideman A., Sebastian, The Relationship Between Gender Diversity and Employee Representation at Board Level and Non-Financial Performance – A Cross-Country Study (July 10, 2019). The International Journal of Accounting, Online Ready. Doi.org/10.1142/S1094406020500018, Available at SSRN: https://ssrn.com/abstract=3417665

Kerstin Lopatta

University of Hamburg - Faculty of Business, Economics, and Social Sciences ( email )

Von-Melle-Park 9
Hamburg, 20146
Germany

Katarina Böttcher

University of Oldenburg ( email )

Ammerländer Heerstraße 114-118
Oldenburg, D-26111
Germany

Sumit Lodhia

University of South Australia

37-44 North Terrace, City West Campus
Adelaide, South Australia 5001
Australia

Sebastian Tideman A. (Contact Author)

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

Syracuse University ( email )

900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States

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