Abstract
In this paper, we develop a contingency-based explanation for how female representation on
boards shapes environmental performance, comparing family and nonfamily firms. We argue that
female directors are associated with stronger environmental performance when family
involvement is high. We also propose that this relationship weakens when firms are financially
vulnerable, strengthens when the CEO is a member of the owning family, and intensifies in
institutional environments with strong environmental protection. Using longitudinal data from
listed firms in more than 20 countries from 2015 to 2022, we find support for our predictions. By
identifying the mechanisms that link female directors to firms’ green actions, we clarify the
influence of board gender diversity on environmental performance.