ESG Ratings and Female Executive Structure – Evidence from China
1 : Seattle University
This paper empirically investigates the relationship between ESG performance and the inclusion of female executives using China's A-share listed companies. Collecting ESG ratings from Hexun, we studied a sample of 29752 firm-year observations from 2010 to 2020. We find that companies with weak ESG performance often increase the number of female executives in the following year. We further examined the consequential ESG performance of these firms following the increase. However, the overall ESG performance does not significantly improve after the inclusion of female executives. Instead, there is a notable rise in the standard deviation of ESG scores, indicating inconsistent improvement in individual ESG metrics.