The Role of Female Leadership and ESG Disclosure

In light of the growing demand for transparent performance information, companies have increasingly implemented disclosure policies regarding environmental, social, and governance (ESG) practices. These policies serve to encourage leaders to utilize ESG factors as a way of assessing the effectiveness of corporate governance. While some studies have shown that gender diverse boards promote ESG disclosures, the varying influence of female leadership roles as executive versus non-executive directors remains ambiguous. Drawing on resource dependency theory and upper echelons theory, this paper provides empirical support for the varying influence of female leadership roles on corporate disclosure. Utilizing longitudinal data of 400 manufacturing companies listed on the Shenzhen Stock Exchange over 2020 to 2022, we demonstrate that female leaders holding executive roles and a combination of both executive and non-executive roles positively influence ESG disclosure while those with non-executive roles do not. Our findings unpack the differential influence regarding the executive versus non-executive roles held by women on corporate boards, providing greater clarity on the impact of female leadership in facilitating ESG disclosure.