Do boards practice what they preach on nonfinancial disclosure? Evidence from China on corporate water information disclosures

Abstract

This study aims to examine whether and how gender diversity on corporate boards is associated with voluntary nonfinancial disclosures, particularly water disclosures. This study uses corporate water information disclosure data from Chinese listed firms between 2010 and 2018 to conduct regression analyses to examine the association between female directors and water information disclosure. Empirical results show that female directors have a significantly positive association with corporate water information disclosure. Additionally, internal industry water sensitivity of firms moderates this significant relationship. This study determined that female directors can promote not only water disclosure but also positive corporate water performance, reflecting the consistency of words and deeds of female directors in voluntary nonfinancial disclosures.

Keywords

• water information disclosure
• voluntary disclosure
• women on boards of directors
• corporate social responsibility
• nonfinancial disclosure
• critical mass