Board Ancestral Diversity and Voluntary Greenhouse Gas Emission Disclosure

57 Pages Posted: 5 Jan 2022 Last revised: 2 Dec 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: December 2, 2022

Abstract

This paper provides new insights into the determinants of the strategic decision to voluntarily disclose greenhouse gas (GHG) emissions – a decision that previous literature has shown to be value enhancing and demanded by stakeholders. We document that board ancestral diversity has a positive and statistically significant effect on a firm’s scope and quality of voluntary GHG emission disclosure. Ancestral diversity is a diversity aspect that is not subsumed by other common diversity measures. Our results are robust to controlling for several other dimensions of board diversity and addressing endogeneity and sample selection. Supplementary analysis suggests that board ancestral diversity has a stronger impact on GHG emission disclosure in complex firms and firms with low institutional ownership. In line with resource dependence, stakeholder, and (stakeholder-)agency theory, we interpret our findings as consistent with the view that board diversity enhances advising and monitoring.

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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