2025/09/30 by Mohammad Hassan Shakil, Shakil, Mohammad Hassan, Arne Johan Pollestad +5 · 1 voice
Computer Science · Economics, Econometrics and Finance · #62P20 #Computers and Society (cs.CY) #FOS: Computer and information sciences #FOS: Economics and business #General Finance (q-fin.GN) #Machine Learning (cs.LG) #cs.CY #cs.LG #q-fin.GN
paper · pdf · doi:10.48550/arxiv.2510.00244
arxiv published 2025/09/30 · arxiv updated 2026/02/06
With European Union initiatives mandating gender quotas on corporate boards, a key question arises: Is greater board gender diversity (BGD) associated with better emissions performance (EP)? To answer this question, we examine the influence of BGD on EP across a sample of European firms from 2016 to 2022. Using panel regressions, advanced machine learning algorithms, and explainable AI, we reveal a non-linear relationship. Specifically, EP improves with BGD up to an optimal level of approximately 35 %, beyond which further increases in BGD yield no additional improvement in EP. A minimum BGD threshold of 22 % is necessary for meaningful improvements in EP. To assess the legitimacy of EP outcomes, this study examines whether ESG controversies weaken the BGD-EP relationship. The results show no significant effect, suggesting that BGD's impact is driven by governance mechanisms rather than symbolic actions. Additionally, path analysis indicates that while environmental innovation contributes to EP, it is not the mediating channel through which BGD promotes EP. The results have implications for academics, businesses, and regulators.