Climate Change and Corporate Governance: Are Board Characteristics and Carbon Footprint Reporting Moderated by CEO Influence?

ABSTRACT

This research investigates how board characteristics such as the number of women directors and the tenure of board members affect carbon footprint reporting and the moderating role that CEO influence plays in such relationships. Applying stakeholder and legitimacy theories, the analysis furthers a comprehensive view of how internal governance mechanisms contribute to firms' environmental transparency. A panel data estimation provides robust evidence of the influence that women directors and board tenure have on carbon footprint reporting, with the main findings indicating that both correlate positively and showing that CEO influence positively moderates women directors' presence and this reporting, but does so negatively between board tenure and reporting, thereby evidencing that the favourable influence of board tenure on such reporting is reduced in the event of influential CEOs.