Key points are not available for this paper at this time.
This study examines the role of gender diversity in audit committees (ACs) and its impact on renewable energy adoption and the effect of different rates of women representation on corporate sustainability practices. The study uses ordinary least squares (OLS) regressions to test the relationship between the female representation in ACs and the use of renewable energy, based on a sample of UK non-financial listed firms in the FTSE 350 index between the years 2011 and 2021. The findings show that there is a statistically significant positive relationship between the female representation in ACs and adoption of renewable energy and that the critical mass view holds true; the presence of several female members has a more significant impact on renewable energy practices. Moreover, the robustness checks using dynamic panel data with the GMM and 2SLS confirm the reliability of the results. In addition, this effect is moderated by firm size, with the effect of even the presence of one female member being felt in large enterprises, but small enterprises, in order to achieve substantial gains, require a critical mass. The results highlight the strategic relevance of gender diversity in audit committees in fostering corporate sustainability to provide a practical recommendation to policymakers, regulators, and corporate leaders that aim at improving corporate governance structures. Applying the theory of the critical mass to the audit committee level, the study demonstrates that a certain percentage of female’s presence has a significant impact on sustainability decision-making, thus adding innovative conclusions on the topic on the connection of gender diversity and corporate governance and environmental performance.
Alshdaifat et al. (Fri,) studied this question.