Board gender diversity reforms and corporate social responsibility: International evidence

Abstract

Using the board gender diversity (BGD) reforms implemented in countries worldwide and a staggered difference-in-differences research design, this study highlights a significant positive impact of BGD reform on firms’CSR performance. Furthermore, the results reveal that among countries implementing BGD reforms, the effect of reform on CSR is more pronounced in countries with greater equality between men and women, as well as in nations with greater environmental, social, and governance risk concerns. Conversely, we observe a weaker influence of BGD on CSR in countries with stricter legal environments and greater political stability. Our findings also indicate that the implementation of BGD reform weakens the positive correlation between a firm’s CSR performance and their future financial performance. In summary, these findings support the notion that while BGD reform plays a pivotal role in promoting firms’ CSR investment, improved CSR initiatives in a country after BGD reform implementation may yield less value enhancement.