Female Directors' Independence and Corporate Environmental Strategy in Chinese Firms: The Moderating Role of Negative Performance Feedback

ABSTRACT Previous research examining the impact of board gender diversity on corporate environmental strategies has yielded mixed results, leaving the specific role of female directors' independence underexplored. To address this gap, this study developed a behavior‐selection model based on agency theory and the behavioral theory of the firm to examine the influence of female directors' independence on corporate environmental strategies, as well as the moderating role of negative performance feedback. Evidence from 3821 Chinese listed companies between 2011 and 2020 reveals that female independent directors have a positive impact on corporate environmental strategies, whereas female non‐independent directors have a negative impact. Furthermore, these relationships are weakened by negative performance feedback. These findings extend the existing body of knowledge, providing a more nuanced investigation into the influence of board gender diversity on corporate environmental strategies. The insights gained from this study hold practical significance for corporations and regulatory bodies aiming to bolster environmental stewardship through enhancing board gender diversity.