arbiter
JournalsAccount

Board Gender Diversity and Capital Adequacy: The Role of Environmental Responsibility in the Banking Industry

Francesco Gangi et al.

Journal of International Financial Management and Accounting2025https://doi.org/10.1111/jifm.12235article
AJG 2ABDC A
Weight
0.52

Abstract

This study investigates how board gender diversity (BGD) impacts banks' risk‐taking and if this effect is mediated through banks' sensitivity toward environmental issues. Indeed, earlier literature recognizes a female risk aversion in financial decision‐making and the urgency for banks to manage environmental risks. Using a sample of 132 banks from 21 countries over the 2009‒2020 period, we examine both the direct effect between BGD on risk‐taking and the indirect effect of the mediating role of banks' environmental engagement. The results indicate that banks with higher BGD show higher capital adequacy ratios (Tier 1; Total Tier) and lower risk‐weighted assets (RWAs), suggesting that the greater the presence of women on the boards, the lower the banks' risk profile. Moreover, the relationship between greater BGD and lower risk‐taking is mediated by the impact of the bank's environmental engagement. Hence, BGD lowers banks' riskiness both directly and indirectly through the channel of improved environmental practices.

7 citations

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1111/jifm.12235

Or copy a formatted citation

@article{francesco2025,
  title        = {{Board Gender Diversity and Capital Adequacy: The Role of Environmental Responsibility in the Banking Industry}},
  author       = {Francesco Gangi et al.},
  journal      = {Journal of International Financial Management and Accounting},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/jifm.12235},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Board Gender Diversity and Capital Adequacy: The Role of Environmental Responsibility in the Banking Industry

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.52

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.47 × 0.4 = 0.19
M · momentum0.68 × 0.15 = 0.10
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.