Board Ancestral Diversity and Voluntary Greenhouse Gas Emission Disclosure
57 Pages Posted: 5 Jan 2022 Last revised: 22 Jun 2022
Date Written: June 2022
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: Suggested Citation