TY - UNPB

T1 - Board expertise, networked boards and environmental performance

AU - Homroy, Swarnodeep

AU - Slechten, Aurelie Cecile Dominique

PY - 2016/11

Y1 - 2016/11

N2 - We analyze the role of board expertise in environmental issues (measured by the presence of non-executive directors with previous experience in environmental issues, EEDs) and director networks on GHG emissions. Using emission data of FTSE 350 firms, we show that the presence of EEDs on the board reduces GHG emissions. Also boards with better networked directors have better environmental performance. These associations are robust to alternative explanations - endogenous matching of firms and directors, general technical expertise of the board, and pro-active stacking in board composition. The results are consistent with the view that director skills and information spillovers through director networks add value.

AB - We analyze the role of board expertise in environmental issues (measured by the presence of non-executive directors with previous experience in environmental issues, EEDs) and director networks on GHG emissions. Using emission data of FTSE 350 firms, we show that the presence of EEDs on the board reduces GHG emissions. Also boards with better networked directors have better environmental performance. These associations are robust to alternative explanations - endogenous matching of firms and directors, general technical expertise of the board, and pro-active stacking in board composition. The results are consistent with the view that director skills and information spillovers through director networks add value.

KW - Director Expertise

KW - Director Networks

KW - Emissions

KW - Environmental Performance

M3 - Working paper

T3 - Economics Working paper series

BT - Board expertise, networked boards and environmental performance

PB - Lancaster University, Department of Economics

CY - Lancaster

ER -