Female Director Diversity and Sustainable Development Goals (SDGs) Reporting: Evidence from Italian Public Interest Entities (PIEs)
摘要
This paper empirically examines the association between board gender diversity and sustainability reporting using Italian public interest entities (PIEs) as empirical setting. Sustainable reporting is defined in this study as the practice of reporting publicly on how a company is integrating the sustainable development goals (SDGs) in its business model and reporting practices. We estimate a logit model where the dependent variable is the probability of a PIE addressing the SDGs in its sustainability report and the main explanatory variable of interest is the degree of gender diversity on boards. Similar models have been adopted in several analyses of sustainability reporting and assurance. The empirical results indicate that board gender diversity explain to some extent the decision of PIEs to address SDGs in their sustainability reports, after controlling for other potential determinants of SDGs disclosure at firm and board level. Findings also indicate that SDGs reporting is in its relative infancy. To the best of our knowledge, there are relatively few empirical studies that specifically examine whether board gender diversity affects the decision and the extent to which companies address SDGs in their sustainability reports. The study contributes to the current understanding of factors related to the decision to engage early in SDG reporting by providing evidence of the role of female directors as a driving force behind a company’s commitment toward sustainable business models and reporting practices that meet the emerging information needs of stakeholders and the wider community.