Leader gender and ESG challenges: Influence on communication, performance and investor's reaction

Details

Supervisors

Shrestha, Prabal

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

enIn a context where sustainability expectations continue to rise, this paper explores the influence of the gender of corporate executives on ESG communication, ESG performance and investor reaction. Based on a sample of 416 US companies and 1,667 CSR reports published between 2007 and 2020, this research uses rigorous quantitative and textual analysis to decipher the communication styles used in CSR reports by executives, the prioritisation of ESG dimensions and their reception by the market. The results reveal that there is a difference in communication style, ESG communication used in CSR reports and a difference in prioritisation of ESG dimensions between male and female executives. Nevertheless, it seems that there is no significant reaction from investors in the short or medium term, either to communication style, ESG communication or to ESG performance. These results raise questions about the real importance that the financial markets attach to the sustainable dimensions of their investments, but also about the real scope of non-financial communication when it is not part of a legal framework. This work contributes to academic research by making the link between theories of leadership, gender, communication and investor behaviour around ESG issues, and invites future studies to pursue research in different regulatory contexts, over the long term and across different cultural environments and geographical areas.