Board Gender Diversity and Environmental Activity in Family Firms: The Role of Female Directors

ABSTRACT This study examines how female board representation relates to environmental activities in family firms, distinguishing family from nonfamily female directors and considering the curvilinear shape of the relationship and the role of industry. Drawing on upper echelons theory and socioemotional wealth, we argue that women's influence depends on their ties to the controlling family, that the marginal effect diminishes as representation grows, and that this varies by sector. Using panel count models on large US family firms in the Fortune 1000 during the 2018–2022 period, we find that female representation is positively associated with the number of environmental activities in family firms. Family and nonfamily female directors show similar linear associations, but only nonfamily directors display a concave pattern. The turning point occurs at a lower level of representation in manufacturing than in nonmanufacturing firms, again only for nonfamily directors. Board gender diversity should not be viewed as a uniform attribute, as its association with corporate environmental engagement varies depending on the heterogeneity of board members and the industry in which the firm operates.