This study aims to examine how ESG disclosure (i.e. sustainability disclosure) responds to board gender diversity using a conditional panel quantile regression approach.
Data was obtained from the audited annual reports of 422 firms listed on stock exchanges across 13 countries in Africa for the period 2006–2020. Empirical results were generated using conditional panel quantile regression, but GMM was also used to confirm result robustness.
The findings provide evidence that board gender diversity positively affects ESG disclosure. More specifically, the results provide evidence that the economic effect of board gender diversity on ESG disclosure gets pronounced/amplified at different quantile levels, supporting the arguments of critical mass.
The study used data of 422 firms from 13 African economies for the period 2006-2020 to estimate the heterogeneous effect of board gender diversity on sustainability disclosures. Further research can focus on the interplay between different dimensions of board diversity in affecting corporate and sustainability performance.
Overall, the result advances the case for firms to pursue gender inclusive strategies/policies that increase the number of women or ensure more gender balance on their boards because it comes with higher benefits as far as sustainability reporting is concerned. In terms of policy, the study reaffirms the need for relevant stakeholders in Africa to come up with a quota policy as far as women representation on boards is concerned.
Majority of studies, particularly those pertaining to board gender diversity have focused on how a percentage increase or decrease impacts organizational outcomes (where mean effect has been largely considered). This study significantly provides that lower number of women on boards may not bring out the best in them as far as the issue of ESG disclosure in Africa is concerned.
