Gender Diversity Indicator, Corporate Environmental and Financial Performance: Evidence from Europe

Purpose – This paper aims to examine the presence of female in the European listed companies and to assess the extent of gender diversity information within corporate reporting. The second step of the research aims to evaluate the gender diversity impact on firm environmental and financial performance. Design/methodology/approach –The methodology consists in the analysis of the issues on gender diversity included in ESG (Environmental, Social and Governance) scores extracted from Bloomberg database. We will perform a Gender Diversity Disclosure Index (GDDI) which will be used in some bivariate and multivariate statistical analyses, to investigate whether and to what extent, GDDI affects the firm’s environmental and financial performance. Corporate Environmental Performance (CEP) will be evaluated by Environmental Disclosure Score, extracted from Bloomberg database and Corporate Financial Performance (CFP) will be measured both by accounting-based measurers (such as ROA, ROE, etc.) and market-based indicators (MTBV, EPS, etc.). The empirical research focuses on the analysis of corporate reports of a sample of the listed companies on the major European stock markets (Eurozone) and the process of data collection may be influenced from the availability of the ESG data. Originality/value –This methodology puts in evidence the development of a composite indicator which is able to broadly represent the position and the role of women in the European business context. This indicator is able to summarize four gender items and it can provide a wide gender diversity measure which can be associated with firm’s environmental and financial performance. Practical implications – The outcomes of this research could provide useful tips for policymakers on how to disclose non-financial information on gender diversity in corporate reporting thanks to innovative forms of corporate reporting. The expected findings may suggest a positive impact of a better gender diversity disclosure on firm’s environmental and financial performance.