Board Gender Diversity and Carbon Disclosure: The Moderating Role of Board Expertise Diversity

Abstract

Board gender diversity has been a key focus in research on the determinants of sustainability disclosures. However, existing literature often attributes variations in disclosure practices to gender diversity rather than board expertise. This study addresses this gap by examining the moderating effect of board expertise diversity on the relationship between board gender diversity and carbon disclosure. A regression analysis is conducted using a Japanese sample of 2169 firm-year observations from 2017 to 2023. The results indicate that a higher proportion of female directors significantly enhances carbon disclosure. Although the effect is primarily driven by female outside directors, the interaction between female inside directors and board expertise diversity has a significant positive impact on carbon disclosure. This finding suggests that diverse expertise is essential for fostering meaningful discussions and insights from female inside directors. Therefore, achieving optimal disclosure practices requires a balanced approach to gender and expertise diversity.