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The role of women on board in combatting greenwashing: A new perspective on environmental performance

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  • R. M. Ammar Zahid
  • Umer Sahil Maqsood
  • Shoaib Irshad
  • Muhammad Kaleem Khan

Abstract

This article aims to improve the understanding of corporate governance and environmental reporting literature by analyzing the impact of board gender diversity (BGD) on environmental performance, environmental disclosure, and greenwashing behavior. The panel regression estimation technique with fixed effects was applied to Chinese firm data. As a result, it was found that more women who served on corporate boards enhanced the company's environmental performance and disclosures while limiting greenwashing behavior. The result indicated that women in top management play a constructive role in establishing firms' active environmental initiatives. Furthermore, this relationship was nonlinear and exponentially increased when women's representation reached the threshold of 33.5% representation on board or higher. Based on the findings, no internal bias was found even after other governance and firm‐level control factors and probable endogenies were considered and variable biases were omitted. Notably, the results present important implications for regulators and policymakers by highlighting the influential role of BGD in promoting environmentally responsible practices and reducing greenwashing.

Suggested Citation

  • R. M. Ammar Zahid & Umer Sahil Maqsood & Shoaib Irshad & Muhammad Kaleem Khan, 2025. "The role of women on board in combatting greenwashing: A new perspective on environmental performance," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 34(1), pages 121-136, January.
    • Handle: RePEc:wly:buseth:v:34:y:2025:i:1:p:121-136
    DOI: 10.1111/beer.12607
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    References listed on IDEAS

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    Cited by:

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    2. Jiacai Xiong & Zelin Yang & Lijuan Xiao & Yushu Zhu, 2025. "Environmental judicial reform and corporate greenwashing: evidence from China’s environmental public interest litigation pilot," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-16, December.
    3. Muhammad Khalid Anser & Muhammad Naeem & Shoukat Ali & Sajid Ali & Anita Larik, 2026. "Exploring the relationship between TMT behavioral integration and environmental performance in Pakistani SMEs: a study of green innovation, green dynamic capabilities, and green finance," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-11, December.
    4. Asif Ali & Bilal Haider Subhani & Shen Zunhuan, 2026. "The role of internal governance competence in mitigating ESG greenwashing: insights from emerging markets," Economics of Governance, Springer, vol. 27(1), pages 1-32, December.
    5. Xu, Morong & Wang, Yaopeng, 2025. "Beyond the green facade: Evidence of a nonlinear link between greenwashing and financing efficiency," Global Finance Journal, Elsevier, vol. 68(C).

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