The Role of Gender Equality at the Country Level on the Relationship Between Women’s Board Representation and Sustainability Assurance Adoption

Purpose: The purpose of this study is to investigate the role of gender equality in the relationship between the critical mass of women’s representation on boards and companies’ decisions to adopt external assurance on their sustainability reports. Design and methodology: The relationship is investigated using secondary data from an international sample of 1924 firms across 41 countries sourced from the Eikon database, ensuring comprehensive coverage of firms that publish sustainability reports. The study uses a logistic regression model to study two aspects: first, the relationship between the critical mass of women’s representation on boards and companies’ decisions to provide external assurance on their sustainability reports, and second, the moderating role of countries’ gender equality policies using the World Bank’s Women, Business and the Law (WBL) index. Findings: The findings of this study indicate that in the case of sustainability assurance adoption, the critical mass of women’s representation on boards is important in countries where the gender equality index is low. Therefore, this study extends the findings of prior studies investigating the critical mass of women’s representation on boards by proving that critical mass is more effective in countries that have a lower gender equality index. Originality: The two main contributions of this study are the findings that (i) the association of women’s representation on boards with companies’ decisions to provide assurance over their sustainability reports is affected by critical mass, and (ii) the critical mass of women’s representation on boards is essential in countries that have a lower gender equality index.

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Publication Details

Journal
Journal of risk and financial management
Published
2025-02-05
DOI
https://doi.org/10.3390/jrfm18020087
Citations
1
Primary Topic
Gender Diversity and Inequality
Type
article
Field-Weighted Citation Impact
3.87
Controls
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article

The Role of Gender Equality at the Country Level on the Relationship Between Women’s Board Representation and Sustainability Assurance Adoption

Kholod Alsahali
1 citations
Journal of risk and financial management
Gender Diversity and Inequality
3.87
article

The Role of Gender Equality at the Country Level on the Relationship Between Women’s Board Representation and Sustainability Assurance Adoption

Kholod Alsahali
article en
1 citations

Abstract

Purpose: The purpose of this study is to investigate the role of gender equality in the relationship between the critical mass of women’s representation on boards and companies’ decisions to adopt external assurance on their sustainability reports. Design and methodology: The relationship is investigated using secondary data from an international sample of 1924 firms across 41 countries sourced from the Eikon database, ensuring comprehensive coverage of firms that publish sustainability reports. The study uses a logistic regression model to study two aspects: first, the relationship between the critical mass of women’s representation on boards and companies’ decisions to provide external assurance on their sustainability reports, and second, the moderating role of countries’ gender equality policies using the World Bank’s Women, Business and the Law (WBL) index. Findings: The findings of this study indicate that in the case of sustainability assurance adoption, the critical mass of women’s representation on boards is important in countries where the gender equality index is low. Therefore, this study extends the findings of prior studies investigating the critical mass of women’s representation on boards by proving that critical mass is more effective in countries that have a lower gender equality index. Originality: The two main contributions of this study are the findings that (i) the association of women’s representation on boards with companies’ decisions to provide assurance over their sustainability reports is affected by critical mass, and (ii) the critical mass of women’s representation on boards is essential in countries that have a lower gender equality index.

Journal of risk and financial managementVol. 18(2)
Jubail Industrial College (SA)
Openalex Percentile: Top 11%
Gender Diversity and Inequality
3.87
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