Board gender diversity and CSR performance in the European sport and leisure sector: implications on distress risk and financial performance

Purpose: The purpose of this paper is to extend the existing literature on the effects of corporate social responsibility (CSR) performance on firms’ financial outcomes and viability. Specifically, it examines the impact of social performance and board gender diversity (BGD) on the financial performance and distress risk of firms operating in the European sport and leisure industry. Design/methodology/approach: This study uses a quantitative analysis approach with panel data regressions, using financial and CSR-related data from an unbalanced sample of 179 unique listed sport and leisure services firms operating within 32 countries of the European continent over the period 2008–2019. Findings: Empirical evidence indicates that CSR performance and BGD contribute positively to financial performance and viability. Specifically, sport firms with above average BGD experienced a more positive effect on their financial performance and a reduction on their distress risk corroborating arguments in the literature referring to the resource-based view of the firm. Originality/value: To the best of the authors’ knowledge, this paper is the first study within the European sport and leisure services industry considering the direct impact of CSR performance and BGD on financial performance and distress risk, thus adding significant evidence on the ongoing debate regarding the advantages (or disadvantages) of gender diversity within the contemporary business world.