Optimizing board structure for ESG integrity: Nonlinear size effects and diversity moderation on greenwashing.

ABSTRACT: This study examines the nonlinear relationship between board size and Environmental, Social, and Governance (ESG) greenwashing and explores how board diversity moderates this association. Using panel data from Chinese A-share listed firms between 2009 and 2023, we employ quadratic fixed-effects regression models to test for an inverted U-shaped relationship. The results indicate that medium-sized boards (10-13 directors) exhibit the highest propensity for greenwashing. Further analyses reveal heterogeneous moderating effects across four dimensions of board diversity-gender, functional background, nationality, and age. Specifically, reaching a critical mass of at least two female directors or increasing functional diversity strengthens the inverted U-shaped relationship, whereas greater age

SUBMITTER: Yu J 

PROVIDER: S-EPMC12829871 | biostudies-literature | 2026

REPOSITORIES: biostudies-literature