Board gender diversity, ESG controversies and circular economy disclosure. An analysis on European listed companies

Purpose – This paper aims to explore how board gender diversity impacts on circular economy (CE) disclosure by a sample of European listed companies. In addition, the paper investigates the moderating role of environmental, social and governance (ESG) controversies in previous relationship. Design/methodology/approach – The study conducted a regression analysis on a sample of 485 companies and 3,761 firm-year observations of European listed companies operating in 19 countries between 2004 and 2021. Findings – The results reveal that the presence of female directors on the board favors the release of higher levels of CE disclosures. Moreover, female directors operating in companies characterized by higher levels of ESGcontroversies tend to release higher CE disclosures. Research limitations/implications – First, the paper does not investigate the qualitative dimension of disclosures.Moreover, the research does not examine other elements of differentiation within the boards, such as cultural or religious diversities. Practical implications – The analysis shows that diversity has an impact on the dissemination of CE information. This should lead companies and policymakers to orient their actions toward both greater diversity in board composition and the higher CE disclosure in fostering sustainable development. Originality/value – This paper offers novel contributions to existing literature suggesting an objective way to measure CE-related disclosure and investigating the moderating role of ESG controversies in the relationship between gender diversity and CE disclosure.