Board Gender Diversity as a Conditional Governance Resource: Evidence from Environmental Innovation in China’s Low-Carbon Transition

Authors

  • Shanshan Yue School of Public Finance and Taxation, Henan University of Economics and Law, Zhengzhou 450000, Henan, China
  • Farhanullah Khan School of Business and Management, Institute Technology Bandung, Indonesia
  • Khartic Rao Manokaran Newcastle Business School, Newcastle Australia Institute of Higher Education, 188064, Singapore
  • Xue Lei School of Management, Shanghai University, Shanghai 200444, China

DOI:

https://doi.org/10.60084/eje.v4i1.389

Keywords:

Board gender diversity, Environmental innovation, Low-carbon transition, Corporate governance, Ownership structure

Abstract

As firms face increasing pressure to support the transition toward a low-carbon economy, corporate governance has emerged as a critical mechanism shaping environmental innovation. This study examines whether and under what conditions board gender diversity contributes to environmental innovation in China’s listed firms. Drawing on upper echelon theory and the resource-based view, we argue that gender-diverse boards enhance cognitive diversity and stakeholder orientation, thereby strengthening firms’ capacity to pursue sustainability-oriented innovation. Using panel data from Chinese A-share listed companies over the period 2014-2023, the results show that board gender diversity is positively associated with environmental innovation, measured by green patent output. However, this relationship is not uniform across institutional contexts. The positive effect is significantly stronger in non-state-owned enterprises than in state-owned enterprises, suggesting that organizational flexibility and market-oriented governance conditions influence whether diversity can be effectively translated into low-carbon outcomes. These findings contribute to the literature by demonstrating that board diversity operates as a conditional governance resource rather than a universally effective mechanism. The study also offers implications for policymakers and firms seeking to align governance reforms with low-carbon transition objectives in emerging economies.

Downloads

Download data is not yet available.

References

  1. Caglar, A. E., Demirdag, I., Destek, M. A., and Daştan, M. (2025). Achieving Ecological Sustainability in European Countries: Does Low Carbon Energy Lead to a Carbon Neutrality Pathway?, Science of The Total Environment, Vol. 958, 177915. doi:10.1016/j.scitotenv.2024.177915.
  2. Nguyen, P. M., Chu, M. T., and Nguyen, M. D. (2023). Role of Demographic Factors in Shaping Sustainable Lifestyles: An Empirical Study in Vietnam, Green and Low-Carbon Economy, Vol. 3, No. 3, 246–254. doi:10.47852/bonviewGLCE32021397.
  3. Farooq, U., Thavorn, J., and Tabash, M. I. (2025). Exploring the Impact of Environmental Regulations and Green Innovation on Corporate Investment and Cash Management: Evidence from Asian Economies, China Finance Review International, Vol. 15, No. 3, 482–508. doi:10.1108/CFRI-06-2024-0337.
  4. Eccles, R. G., Ioannou, I., and Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes and Performance, Management Science, Vol. 60, No. 11, 2835–2857. doi:10.1287/mnsc.2014.1984.
  5. Gao, P., and Perdana, A. (2026). The ESG Flow–Return Paradox: Green Sentiment Boosts Inflows but Lags in Returns, Journal of Environmental Management, Vol. 398, 128385. doi:10.1016/j.jenvman.2025.128385.
  6. Zaman, R., Asiaei, K., Nadeem, M., Malik, I., and Arif, M. (2024). Board Demographic, Structural Diversity, and Eco-Innovation: International Evidence, Corporate Governance: An International Review, Vol. 32, No. 3, 374–390. doi:10.1111/corg.12545.
  7. Wei, G., Bi, M., Liu, X., Zhang, Z., and He, B.-J. (2023). Investigating the Impact of Multi-Dimensional Urbanization and FDI on Carbon Emissions in the Belt and Road Initiative Region: Direct and Spillover Effects, Journal of Cleaner Production, Vol. 384, 135608. doi:10.1016/j.jclepro.2022.135608.
  8. Liu, Y., and Sun, S. (2023). Carbon Neutrality Goal Is Too Far Away? Residents’ Psychological Distance of Low-Carbon Policy Over Time and Space in China, Green and Low-Carbon Economy, Vol. 4, No. 1, 85–94. doi:10.47852/bonviewGLCE3202771.
  9. Wen, H., Cao, R., Nghiem, X.-H., and Doytch, N. (2026). Banking Fintech and Corporate Innovation in China’s Carbon-Intensive Industries: Evidence from Different Panel Approaches, Financial Innovation, Vol. 12, No. 1, 23. doi:10.1186/s40854-025-00903-8.
  10. Abdulkareem, H. K. K., Jimoh, S. O., Nofiu, T. T., and Akande, R. S. (2025). Leaving No One Behind: Examining the Effect of Financial, Gender, and Digital Inclusion on Sustainable Development, Sustainable Development, Vol. 33, No. 2, 2519–2534. doi:10.1002/sd.3245.
  11. Cambrea, D. R., Paolone, F., and Cucari, N. (2023). Advisory or Monitoring Role in ESG Scenario: Which Women Directors Are More Influential in the Italian Context?, Business Strategy and the Environment, Vol. 32, No. 7, 4299–4314. doi:10.1002/bse.3366.
  12. Dixit, J. K., Agarwal, S., Agrawal, V., and Kazancoglu, Y. (2025). An Investigative Study on Entrepreneurial Motives and Venture Creation: A Select Study on Women Entrepreneurship and Sustainable Development Goals, Business Strategy & Development, Vol. 8, No. 3. doi:10.1002/bsd2.70221.
  13. Chen, M., and Chen, C. (2023). Financial Constraints Alleviation: Why Does State-Owned Share Reduction in China Promote Firm Performance?, Finance Research Letters, Vol. 55, 103824. doi:10.1016/j.frl.2023.103824.
  14. Li, K., Xia, Y., and Zhang, J. (2023). CEOs’ Multicultural Backgrounds and Firm Innovation: Evidence from China, Finance Research Letters, Vol. 57, 104255. doi:10.1016/j.frl.2023.104255.
  15. Griffin, D., Li, K., and Xu, T. (2021). Board Gender Diversity and Corporate Innovation: International Evidence, Journal of Financial and Quantitative Analysis, Vol. 56, No. 1, 123–154. doi:10.1017/S002210901900098X.
  16. Cooke, F. L. (2023). Changing Lens: Broadening the Research Agenda of Women in Management in China, Journal of Business Ethics, Vol. 184, No. 2, 375–389. doi:10.1007/s10551-022-05105-1.
  17. Liu, Y., Wang, A., and Wu, Y. (2021). Environmental Regulation and Green Innovation: Evidence from China’s New Environmental Protection Law, Journal of Cleaner Production, Vol. 297, 126698. doi:10.1016/j.jclepro.2021.126698.
  18. Hambrick, D. C., and Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers, Academy of Management Review, Vol. 9, No. 2, 193–206. doi:10.5465/amr.1984.4277628.
  19. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage, Journal of Management, Vol. 17, No. 1, 99–120. doi:10.1177/014920639101700108.
  20. Yue, S., Norkhairul, B. H., Khatib, S. F. A., and Lee, Y. (2025). Financing Creativity: How State-Owned and Foreign Ownership Shape Innovation Engagement in China, Kybernetes, Vol. 54, No. 15, 7813–7841. doi:10.1108/K-03-2024-0797.
  21. Khan, F., and Sukarno, S. (2024). Good Corporate Governance and Firm Value before and after COVID-19 Case Study of Manufacturing Companies in Indonesia, International Journal of Current Science Research and Review, Vol. 07, No. 04. doi:10.47191/ijcsrr/V7-i4-26.
  22. Yue, S., and Bajuri, N. H. (2026). Voice and Vision: How Executive Green Awareness and Media Attention Shape Sustainable Development, Business Strategy and the Environment, Vol. 35, No. 2, 2037–2057. doi:10.1002/bse.70275.
  23. Khuong, N. V., Tai, V. T. T., Thao, N. T. P., Tuan, P. M., Dung, T. T., and Khanh, V. T. (2024). Corporate Governance and Corporate Carbon Disclosures: The Moderating Role of Earnings Management, Corporate Social Responsibility and Environmental Management, Vol. 31, No. 5, 4596–4611. doi:10.1002/csr.2820.
  24. Yue, S., Coussa, A., Bajuri, N. H., and Ma, L. (2025). Is More Always Better? The Strategic Impact of Board Diversity and New Quality Productivity on Environmental Innovation, Business Strategy & Development, Vol. 8, No. 2. doi:10.1002/bsd2.70129.
  25. Sandretto, D., Rizzi, A., and Esposito, G. (2025). Gender Diversity Leadership and ESG Performance: The Influence of Women on Boards and in Management, Business Strategy and the Environment, Vol. 34, No. 4, 5075–5094. doi:10.1002/bse.4241.
  26. Post, C., and Byron, K. (2015). Women on Boards and Firm Financial Performance: A Meta-Analysis, Academy of Management Journal, Vol. 58, No. 5, 1546–1571. doi:10.5465/amj.2013.0319.
  27. Bello‐Pintado, A., Machuca, J. A. D., and Danese, P. (2023). Stakeholder Pressures and Sustainability Practices in Manufacturing: Consideration of the Economic Development Context, Business Strategy and the Environment, Vol. 32, No. 7, 4084–4102. doi:10.1002/bse.3355.
  28. Ozdemir, S., Carlos Fernandez de Arroyabe, J., Sena, V., and Gupta, S. (2023). Stakeholder Diversity and Collaborative Innovation: Integrating the Resource-Based View with Stakeholder Theory, Journal of Business Research, Vol. 164, 113955. doi:10.1016/j.jbusres.2023.113955.
  29. Al-Dhamari, R., Baatwah, S. R., Pucheta-Martínez, M. C., and Tawfik, O. I. (2025). Do Environmental Controversies Lead to Lower Dividend Payouts? The Role of Environmental Performance and Board Gender Diversity, Research in International Business and Finance, Vol. 79, 103037. doi:10.1016/j.ribaf.2025.103037.
  30. Nadeem, M., Bahadar, S., Zaman, R., and Farooq, M. B. (2021). Does Organisational Capital Influence Environmental Strategies? Evidence from Environmental Innovation, Business Strategy and the Environment, Vol. 30, No. 8, 4121–4135. doi:10.1002/bse.2860.
  31. A. A. Zaid, M., Wang, M., Adib, M., Sahyouni, A., and T. F. Abuhijleh, S. (2020). Boardroom Nationality and Gender Diversity: Implications for Corporate Sustainability Performance, Journal of Cleaner Production, Vol. 251, 119652. doi:10.1016/j.jclepro.2019.119652.
  32. Du, X. (2016). Does Confucianism Reduce Board Gender Diversity? Firm-Level Evidence from China, Journal of Business Ethics, Vol. 136, No. 2, 399–436. doi:10.1007/s10551-014-2508-x.
  33. Eissa, A. M., Hamdy, A., and Diab, A. (2024). Governmental Ownership, Board Gender Diversity, and ESG Performance: Evidence from an Emerging Market, Sustainability, Vol. 16, No. 16, 6963. doi:10.3390/su16166963.
  34. Walls, J. L., Berrone, P., and Phan, P. H. (2012). Corporate Governance and Environmental Performance: Is There Really a Link?, Strategic Management Journal, Vol. 33, No. 8, 885–913. doi:10.1002/smj.1952.
  35. Zhang, S., Jin, M., Xie, M., and Xu, L. (2025). Environmental Policy and Corporate Green Innovation: The Role of Penalties, Taxes, and Subsidies in China, Journal of Environmental Management, Vol. 392, 126730. doi:10.1016/j.jenvman.2025.126730.
  36. García, C. J., Herrero, B., and Morillas, F. (2022). Corporate Board and Default Risk of Financial Firms, Economic Research-Ekonomska Istraživanja, Vol. 35, No. 1, 511–528. doi:10.1080/1331677X.2021.1909490.
  37. Caiazzo, E., Gambacorta, L., Oliviero, T., and Shin, H. S. (2025). Corporate Payout Policy: Are Financial Firms Different?, The Review of Corporate Finance Studies. doi:10.1093/rcfs/cfaf025.
  38. Ain, Q. U., Yuan, X., Javaid, H. M., Usman, M., and Haris, M. (2021). Female Directors and Agency Costs: Evidence from Chinese Listed Firms, International Journal of Emerging Markets, Vol. 16, No. 8, 1604–1633. doi:10.1108/IJOEM-10-2019-0818.
  39. Xing, C., Zhang, X., Zhang, Y., and Zhang, L. (2024). From Green-Washing to Innovation-Washing: Environmental Information Intangibility and Corporate Green Innovation in China, International Review of Economics & Finance, Vol. 93, 204–226. doi:10.1016/j.iref.2024.03.077.
  40. Liao, Z., and Xiao, L. (2025). Government Environmental Regulation, Media Attention, and Corporate Green Innovation, International Review of Economics & Finance, Vol. 97, 103751. doi:10.1016/j.iref.2024.103751.
  41. Collins, R., and Blau, P. M. (1979). Inequality and Heterogeneity: A Primitive Theory of Social Structure., Social Forces, Vol. 58, No. 2, 677. doi:10.2307/2577612.
  42. Tabash, M. I., Ahmed, A., Riyadh, H. A., Beshr, B. A. H., Issa, S. S., and Varma, M. (2025). Career Embeddedness Leads toward Innovation: The Impact of Chief Executive Officer (CEO) Career Embeddedness on Green Innovation, Journal of Open Innovation: Technology, Market, and Complexity, Vol. 11, No. 1, 100450. doi:10.1016/j.joitmc.2024.100450.
  43. Ardito, L., Dangelico, R. M., and Messeni Petruzzelli, A. (2021). The Link between Female Representation in the Boards of Directors and Corporate Social Responsibility: Evidence from B Corps, Corporate Social Responsibility and Environmental Management, Vol. 28, No. 2, 704–720. doi:10.1002/csr.2082.
  44. Steinbrunner, P. (2024). Is Larger Really Better? Productivity and Firm Size in European Electricity Generation Sectors, Journal of Cleaner Production, Vol. 446, 141382. doi:10.1016/j.jclepro.2024.141382.
  45. Hao, J., Sun, R., Lucey, B., He, F., and Urquhart, A. (2025). From Ecosystem Threats to Balance Sheets: Biodiversity Risks Exposure and Corporate Cash Policies, Business Strategy and the Environment. doi:10.1002/bse.70380.
  46. Alves, S. (2023). CEO Duality, Earnings Quality and Board Independence, Journal of Financial Reporting and Accounting, Vol. 21, No. 2, 217–231. doi:10.1108/JFRA-07-2020-0191.
  47. Ongsakul, V., Treepongkaruna, S., Jiraporn, P., and Uyar, A. (2021). Do Firms Adjust Corporate Governance in Response to Economic Policy Uncertainty? Evidence from Board Size, Finance Research Letters, Vol. 39, 101613. doi:10.1016/j.frl.2020.101613.
  48. Hausman, J. A. (1978). Specification Tests in Econometrics, Econometrica, Vol. 46, No. 6, 1251. doi:10.2307/1913827.
  49. Wooldridge, J. M. (2010). Econometric Analysis of Cross Section and Panel Data, The MIT Press.
  50. Arellano, M., and Bover, O. (1995). Another Look at the Instrumental Variable Estimation of Error-Components Models, Journal of Econometrics, Vol. 68, No. 1, 29–51. doi:10.1016/0304-4076(94)01642-D.
  51. Calabrese, A., Costa, R., Levialdi Ghiron, N., Tiburzi, L., and Villazon Montalvan, R. A. (2022). Is the Private Sector Becoming Cleaner? Assessing the Firms’ Contribution to the 2030 Agenda, Journal of Cleaner Production, Vol. 363, 132324. doi:10.1016/j.jclepro.2022.132324.
  52. Abbas, S. A., Khan, M. H., and Syed, S. H. (2025). Board Members’ Nationality, Corruption, and Corporate Climate Change Risk in UK Firms: Evidence from OECD and Non-OECD Board Members, Journal of Environmental Management, Vol. 393, 127202. doi:10.1016/j.jenvman.2025.127202.
  53. Adusei, E., Halaszovich, T., and Gebhardt, L. (2025). Greening the Nexus between Managerial Innovativeness and Innovation Performance of Manufacturing SMEs: The Mediating Role of Green Ambidexterity, Business Strategy and the Environment, Vol. 34, No. 6, 7016–7032. doi:10.1002/bse.4335.

Downloads

Published

2026-04-27

How to Cite

Yue, S., Khan, F., Manokaran, K. R. and Lei, X. (2026) “Board Gender Diversity as a Conditional Governance Resource: Evidence from Environmental Innovation in China’s Low-Carbon Transition”, Ekonomikalia Journal of Economics, 4(1), pp. 42–57. doi: 10.60084/eje.v4i1.389.

Issue

Vol. 4 No. 1 (2026): April 2026

Section

Articles

License

Copyright (c) 2026 Shanshan Yue, Farhanullah Khan, Khartic Rao Manokaran, Xue Lei

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.