Using Baltagi and Li’s (2002) semi-parametric panel fixed effects model, this article investigates the effect of board gender diversity (BGD) on a firm’s environmental performance (EP) in a sample of firms from the 2020 Fortune 1000 Index over the 2004–2020 period. We address the endogeneity issue via a control function. Contrary to the existing literature, we find an inverted U- shaped BGD-EP relationship with a turning point. Similarly, we show that this relationship is endogenous and dynamic by nature. Overall, we find a curvilinear relationship (inverted U-shape) between BGD and EP, thereby supporting the “too-much-of-a-good-thing” (TMGT) effect (Pierce and Aguinis, 2013).
- B23: Econometrics • Quantitative and Mathematical Studies
- C14: Semiparametric and Nonparametric Methods: General
- G34: Mergers • Acquisitions • Restructuring • Corporate Governance
Rey Dang, Majdi Karmani, L'hocine Houanti, Michel Simioni, and Ilyes Abid, “Board gender diversity and environmental performance: A semi-parametric panel data analysis”, Finance Research Letters, vol. 58, n. 104032, December 2023.
Finance Research Letters, vol. 58, n. 104032, December 2023