The Relationship Between Board Diversity and Corporate Environmental Performance: A Meta‐Analysis

ABSTRACT The association between corporate governance mechanisms and corporate environmental performance has gained increasing academic engagement; however, existing empirical studies provide inconsistent results. This study aims at empirically summarizing the results of previous research on the relationship between different characteristics of board diversity and corporate environmental performance. A systematic review of the literature and a meta‐analysis were conducted, including 136 effect sizes and 707,196 observations from 48 empirical research articles. The findings show a weak positive relationship between a higher level of gender diversity within the management board and better corporate environmental performance. Such relationship differs between geographical locations. Conclusions on other demographic and professional aspects could not be drawn due to limited data availability or non‐significant statistical results. Given the limited quantity and high level of heterogeneity in the field, we contribute a critical review and integration of various inconsistent insights which provide a robust evidence‐based generalization of the inclusion of diversity in managing corporate environmental performance. Diversity could be used as one of the internal corporate governance mechanisms to improve environmental performance; however, supporting policy development and implementation should also be carried out. Even though direct implication could not be proved, improving policy support and corporate strategy to enhance board diversity would enable long‐term social value creation and promote social inclusion in the business environment.