Do boardroom interlock networks enhance corporate environmental responsibility? A resource-management perspective

Purpose Using social network theory and resource dependence theory, this study undercovers whether independent directors’ interlocks contribute directly to corporate environmental responsibility (CER). Furthermore, we scrutinize how independent directors’ interlocks contribute indirectly to CER by mitigating information asymmetry (ASY) and Financial constraints (FC). Design/methodology/approach This study employs various regression techniques, including robust analysis, applies the generalized method of moments, second-stage least squares and propensity score matching methods to address endogeneity concerns and heterogeneity analysis, using a sample of 4,902 listed firms in China over the period of 2010–2022. Findings The results indicate that firms possess interlocks through their independent directors and play a crucial role in fostering CER. The promotional effect of the independent directors’ interlocks on CER is channeled through downward information asymmetry and financial constraints. Practical implications This research highlights that multiple independent directorships are a key resource for enhancing CER. Firms can leverage these interlocks to effectively implement CER activities, while policymakers can promote the importance of independent directors in achieving carbon reduction goals. Originality/value This study examines the direct impact of two different types of interlocks (independent director corporate interlock and independent director financial interlock) on CER with the mediating role of information asymmetry and financial constraints, which has been unexplored and neglected previously.