Critical masses and voluntary climate change disclosures: evidence from Türkiye

Abstract

Purpose

This paper aims to examine the effect of critical mass of women managers on corporate boards on the voluntary disclosure of climate change in a developing country in which the regulations on climate change disclosure is an area of growing research interest.

Design/methodology/approach

This study uses logistic panel regression models with a sample of 1,001 firm-years for companies in the Borsa Istanbul 100 Index that were asked to disclose voluntary climate change indicators over the seven-year period from 2014 to 2020 through the Carbon Disclosure Project.

Findings

This paper provides evidence from an emerging country that the critical mass of women on the board has no impact on voluntary climate change disclosure. In addition, the presence of independent managers on the board was found to have a significant impact on climate change disclosure. In addition, the results show that larger companies are more likely to report their climate change activities. Large companies are more visible due to their size, are perceived by stakeholders as more polluting and are, therefore, more likely to report on the environment.

Social implications

The results show that the critical mass of women on the board has no effect on voluntary disclosure of climate change. Empirical tests are still needed to strengthen the overall validity of the critical mass of at least three women on boards in Türkiye.

Originality/value

Despite many valuable insights provided by critical mass theory, very few studies directly address critical mass and voluntary disclosure of climate change. To the best of the authors’ knowledge, this study is the first empirical and comprehensive paper in the Turkish context evaluating critical masses and voluntary corporate climate change giving a comparison between firms listed on financial industry and nonfinancial industry.

Citation

Kutlu Furtuna, O. and Sönmez, H. (2024), "Critical masses and voluntary climate change disclosures: evidence from Türkiye", Social Responsibility Journal, Vol. 20 No. 5, pp. 956-974. https://doi.org/10.1108/SRJ-06-2023-0334