Working Paper: CEPR ID: DP17650
Authors: Leonardo Gambacorta; Livia Pancotto; Alessio Reghezza; Martina Spaggiari
Abstract: We study whether female directors in banks’ boardrooms influence lending decisions toward less polluting firms. By using granular credit register data matched with information on firm-level greenhouse gas emission intensities, we isolate credit supply shifts and find that banks with more gender-diverse boards provide less credit to browner companies. This evidence is robust when we consider different types of emissions and control for endogeneity concerns. We also show that better-educated female directors grant lower credit volumes to more polluting firms. The “greening” effect of a greater female representation in banks’ boardrooms is stronger in countries with more female climate-oriented politicians.
Keywords: gender; board diversity; credit registry; bank lending
JEL Codes: G01; G21; G30; Q50
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| gender diversity in bank boardrooms (J16) | lending behavior toward firms with varying GHG emissions (F64) |
| gender diversity in bank boardrooms (J16) | less credit to more polluting companies (F64) |
| educational background of female directors (I24) | lending behavior (G21) |
| greater female representation in decision-making roles (J16) | environmentally conscious lending practices (G21) |
| female board members (G34) | greening effect stronger in countries with female climate-oriented politicians (F64) |