Gender diversity on boards and environmental violations in European firms

Knowledge of the impact of board gender diversity on environmental violations in Europe remains limited, as previous literature has focused on socially responsible practices, with less research being directed toward the determinants of corporate actions that harm the environment. This study aimed to...

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Main Authors: Gema C. Fleitas-Castillo, Devora Peña-Martel, Jerónimo Pérez-Alemán, Domingo Javier Santana-Martín
Format: Article
Language:English
Published: AIMS Press 2025-02-01
Series:Green Finance
Subjects:
Online Access:https://www.aimspress.com/article/doi/10.3934/GF.2025005
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author Gema C. Fleitas-Castillo
Devora Peña-Martel
Jerónimo Pérez-Alemán
Domingo Javier Santana-Martín
author_facet Gema C. Fleitas-Castillo
Devora Peña-Martel
Jerónimo Pérez-Alemán
Domingo Javier Santana-Martín
author_sort Gema C. Fleitas-Castillo
collection DOAJ
description Knowledge of the impact of board gender diversity on environmental violations in Europe remains limited, as previous literature has focused on socially responsible practices, with less research being directed toward the determinants of corporate actions that harm the environment. This study aimed to address this gap through a multi-theoretical approach and by using different estimation methods. In addition, we used penalties related to environmentally harmful practices, since they represent an appropriate proxy for measuring environmental irresponsibility given that they directly reflect sanctions imposed by regulators and are therefore not subject to manipulation or greenwashing practices. We analyzed a sample of non-financial firms in the STOXX Europe 600 index for 2016–2022. Our findings indicate that board gender diversity leads to a reduction in environmental violations. These results suggest that female directors help mitigate environmental misconduct by improving oversight, enhancing the firm's public image, and facilitating access to essential resources. In addition, board gender diversity improves decision-making and fosters a culture of sustainability by integrating diverse perspectives and approaches. We validated the robustness of our results by using different procedures to address endogeneity issues (OLS, TOBIT, 2SLS, Heckman, and GMM).
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spelling doaj-art-e81694464b3644ea88f54423d467dd4b2025-08-20T01:57:05ZengAIMS PressGreen Finance2643-10922025-02-017111714510.3934/GF.2025005Gender diversity on boards and environmental violations in European firmsGema C. Fleitas-Castillo0Devora Peña-Martel1Jerónimo Pérez-Alemán2Domingo Javier Santana-Martín3Department of Financial Economics and Accounting, University of Las Palmas de Gran Canaria, c/Juan de Quesada, 30, 35001 Las Palmas de Gran Canaria, SpainDepartment of Financial Economics and Accounting, University of Las Palmas de Gran Canaria, c/Juan de Quesada, 30, 35001 Las Palmas de Gran Canaria, SpainDepartment of Financial Economics and Accounting, University of Las Palmas de Gran Canaria, c/Juan de Quesada, 30, 35001 Las Palmas de Gran Canaria, SpainDepartment of Financial Economics and Accounting, University of Las Palmas de Gran Canaria, c/Juan de Quesada, 30, 35001 Las Palmas de Gran Canaria, SpainKnowledge of the impact of board gender diversity on environmental violations in Europe remains limited, as previous literature has focused on socially responsible practices, with less research being directed toward the determinants of corporate actions that harm the environment. This study aimed to address this gap through a multi-theoretical approach and by using different estimation methods. In addition, we used penalties related to environmentally harmful practices, since they represent an appropriate proxy for measuring environmental irresponsibility given that they directly reflect sanctions imposed by regulators and are therefore not subject to manipulation or greenwashing practices. We analyzed a sample of non-financial firms in the STOXX Europe 600 index for 2016–2022. Our findings indicate that board gender diversity leads to a reduction in environmental violations. These results suggest that female directors help mitigate environmental misconduct by improving oversight, enhancing the firm's public image, and facilitating access to essential resources. In addition, board gender diversity improves decision-making and fosters a culture of sustainability by integrating diverse perspectives and approaches. We validated the robustness of our results by using different procedures to address endogeneity issues (OLS, TOBIT, 2SLS, Heckman, and GMM).https://www.aimspress.com/article/doi/10.3934/GF.2025005board gender diversityenvironmental violationsagency conflictresource dependencelegitimacyhuman capital theoryattribution theoryfault line theory
spellingShingle Gema C. Fleitas-Castillo
Devora Peña-Martel
Jerónimo Pérez-Alemán
Domingo Javier Santana-Martín
Gender diversity on boards and environmental violations in European firms
Green Finance
board gender diversity
environmental violations
agency conflict
resource dependence
legitimacy
human capital theory
attribution theory
fault line theory
title Gender diversity on boards and environmental violations in European firms
title_full Gender diversity on boards and environmental violations in European firms
title_fullStr Gender diversity on boards and environmental violations in European firms
title_full_unstemmed Gender diversity on boards and environmental violations in European firms
title_short Gender diversity on boards and environmental violations in European firms
title_sort gender diversity on boards and environmental violations in european firms
topic board gender diversity
environmental violations
agency conflict
resource dependence
legitimacy
human capital theory
attribution theory
fault line theory
url https://www.aimspress.com/article/doi/10.3934/GF.2025005
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AT devorapenamartel genderdiversityonboardsandenvironmentalviolationsineuropeanfirms
AT jeronimoperezaleman genderdiversityonboardsandenvironmentalviolationsineuropeanfirms
AT domingojaviersantanamartin genderdiversityonboardsandenvironmentalviolationsineuropeanfirms