Women on management board and ESG performance

Purpose: The purpose of this paper is to analyse women on management board and their impact on environmental, social and governance (ESG) performance in two European two-tier countries. Design/methodology/approach: The empirical quantitative paper covers a sample of German and Austrian companies which are listed at the Prime Standard of the Frankfurt and Vienna Stock Exchange for the business years 2010-2014 (1,019 firm-year observations). A correlation and regression analysis is conducted to measure a possible link between gender diversity and ESG performance in these European countries. Findings: Multiple regressions state that female members in the management board do have a positive impact on ESG performance, measured by the AssetFour database by Thomson Reuters. Surprisingly, CSR expertise does not have a significant impact on ESG performance, whether the implementation of a CSR committee has a positive and significant link with ESG performance. Originality/value: The analysis is the first empirical study that has a focus on Germany and Austria as the main representatives of the European two-tier system. Findings have implications for both users and public policy and suggest that current national and European regulations on corporate governance and CSR could have a great impact on future CSR performance and market reactions.