Board gender diversity and sustainability reporting quality: a generalized ordered logit approach

Abstract

Purpose With growing environmental and social issues worldwide, sustainability disclosures and reporting have become a focal point of discussion. This study aims to investigate the role played by gender diversity in sustainability disclosures in the context of India, over a period of eight years. Design/methodology/approach The study devises a unique sustainability reporting quality index and employs the generalized ordered logit model, which ensures that results are parsimonious even if the assumptions under a logit model are violated. Findings The results suggest that with an increase in the percentage of women directors and the number of independent women directors on board, the sustainability reporting quality is likely to improve. Practical implications The results of the study shall play a significant role for the corporate houses established in India, as it encourages them to modify their directors' selection process and ensure that women are able to break the “glass ceiling” to reach the upper echelon in the firms. Social implications The study gives an insight into the role played by women directors in sustainability reporting quality aspect, and therefore, the regulatory bodies, as well as policymakers of the Indian economy, shall formulate such regulations which can advance the presence of women on the board and in the decision-making process. Originality/value This study is among the first to investigate the relationship between gender diversity and sustainability reporting quality using the generalized ordered logit model which is an improvement over the previously used techniques. Moreover, the unique cultural and institutional setting offered by India, which is an emerging economy, provides a fertile ground for understanding the role of women leaders in the workforce.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 29 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.