Women on Boards and Corporate Environmental Performance: Does Institutional Ownership Matter?

ABSTRACT This study examines the relationship between Board Gender Diversity (BGD) and Corporate Environmental Performance (CEP), with particular attention to the moderating role of institutional ownership. Using a panel of 188 French firms listed on the CAC All‐Tradable index over 2006–2022 (3196 firm‐year observations), the findings reveal that BGD is positively associated with CEP. Moreover, institutional ownership strengthens this relationship, highlighting the role of institutional investors in fostering environmentally responsible corporate behavior. Additional analyses indicate that BGD positively influences key dimensions of CEP, including resource efficiency, emission reductions, and environmental product innovation, consistent with the multidimensional nature of corporate environmental performance. The results remain robust to alternative specifications addressing endogeneity. The study provides evidence that BGD constitutes an important governance mechanism for enhancing corporate environmental strategies.