Analysis reveals gender diversity in leadership improves sustainability performance and disclosure metrics.
Key Points
Female leadership enhances both sustainability performance and disclosure in firms, indicating a shift in corporate responsibility.
Analysis of 4618 firm-year observations showed a positive link between gender diversity and sustainability metrics, notably from 2002 to 2022.
The study underscores the role of executive compensation, which can influence the relationship between gender diversity and sustainability outcomes.
Findings suggest that executive gender diversity can be a substitute for board diversity, emphasizing the importance of considering all leadership levels.