QUEEN’S BUSINESS SCHOOL ACCOUNTING SEMINAR SERIES

Friday 31^st October

11am

“Gender Diversity, Audit Committees, and ESG Decoupling”

Syed Chowdhury

QUB/QBS

Abstract:

This study examines the relationship between audit committee gender diversity and ESG decoupling among FTSE 350 firms over the period 2005 to 2022. We find that firms with greater female representation on their audit committees exhibit greater divergence between ESG disclosure and ESG performance. Further analysis reveals that this relationship is driven primarily by strategic considerations, with firms constraining symbolic overstatements while maintaining substantive actions, suggesting that female audit committee members may influence ESG strategies in ways that reconcile external legitimacy with internal resource management. The association remains robust across alternative specifications and identification strategies, including a quasi-natural experiment based on the 2011 Davies Review. Supplementary evidence suggests that the effect is not contingent on female directors’ financial expertise but weakens in the presence of high information asymmetry. These findings underscore the advisory role of female non-executives in shaping non-financial reporting practices and guiding ESG-related governance choices. This study provides important insights for investors, regulators, and policymakers seeking to strengthen ESG oversight through gender-inclusive governance reforms.

QBS Conference Hub, Seminar Room 01.012