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.