Board Ancestral Diversity and Voluntary Greenhouse Gas Emission Disclosure

57 Pages Posted: 5 Jan 2022 Last revised: 22 Jun 2022

See all articles by Johannes A. Barg

Johannes A. Barg

University of Hamburg

Wolfgang Drobetz

University of Hamburg

Sadok El Ghoul

University of Alberta - Campus Saint-Jean

Omrane Guedhami

University of South Carolina - Moore School of Business

Henning Schröder

University of Hamburg - Hamburg Business School; Hamburg Financial Research Center

Date Written: June 2022

Abstract

Prior research suggests that the disclosure of greenhouse gas (GHG) emissions—a primary cause of climate change—affects firm valuation. In this paper, we provide new insights into the determinants of the voluntary disclosure of GHG emissions. We show that board ancestral diversity has a positive and statistically significant effect on a firm’s scope and quality of voluntary GHG emission disclosure. This effect is robust to controlling for several other dimensions of board diversity as well as to addressing endogeneity and sample selection. Additional analysis suggests that board ancestral diversity has a higher impact on GHG emission disclosure in firms with low institutional ownership and high corporate complexity. We interpret these findings as consistent with the view that board diversity enhances monitoring and advising.

Keywords: greenhouse gas emission disclosure, board of directors, board diversity, ancestry

JEL Classification: G30, G41, M14, M40, Q56

Suggested Citation

Barg, Johannes A. and Drobetz, Wolfgang and El Ghoul, Sadok and Guedhami, Omrane and Schröder, Henning, Board Ancestral Diversity and Voluntary Greenhouse Gas Emission Disclosure (June 2022). Available at SSRN: https://ssrn.com/abstract=3998920 or http://dx.doi.org/10.2139/ssrn.3998920

Johannes A. Barg (Contact Author)

University of Hamburg

Moorweidenstraße 18
Hamburg, 20148
Germany

Wolfgang Drobetz

University of Hamburg ( email )

Moorweidenstrasse 18
Hamburg, 20148
Germany

Sadok El Ghoul

University of Alberta - Campus Saint-Jean ( email )

Edmonton, Alberta T6G 2R3
Canada
780-465-8725 (Phone)
780-465-8760 (Fax)

Omrane Guedhami

University of South Carolina - Moore School of Business ( email )

Columbia, SC
United States

Henning Schröder

University of Hamburg - Hamburg Business School ( email )

Moorweidenstr. 18
Hamburg, 20148
Germany

Hamburg Financial Research Center ( email )

c/o University of Hamburg
Moorweidenstr. 18
Hamburg, 20148
Germany

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