Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies
This study investigates the association between environmental, social, and governance (ESG) disclosure
and diversity of the board of directors (BoD) in Italian listed companies. Diversity of BoD
in terms of gender diversity, CSR committees, board average, and independent directors are examined
as to their influence on voluntary ESG disclosure. This rating is highly relevant to managers
and investors considering ESG issues in their decision-making process. The factors that
drive or hinder ESG disclosure are gaining importance. Despite the relevance of the topic, in
Italy there is a scarce amount of literature regarding diversity in the BoD. The data set includes
ESG data for more than 54 Italian companies for the period 2011–2014. The results indicate that
firm’s CSR disclosure is associated with independent director and committee CSR. In addition,
women on BoDs is negatively correlated while the age of the board is not significant. Based
on this study, shareholders and policymakers will have a deeper knowledge on the significant
roles that board diversity is playing as a determinant of ESG disclosure. Copyright © 2017 John
Wiley & Sons, Ltd and ERP Environment