Aug 2026· Journal of Financial Reporting & Accounting· pp. 1-26· 0 citations· 80 references
Abstract
This study aims to investigate whether board gender diversity (BGD) influences environmental, social and governance (ESG) performance, while also examining the moderating role of institutional ownership on this relationship.
A sample of 504 firm-year observations was obtained across 63 nonfinancial firms publicly traded within the Egyptian Exchange during 2015–2022. The empirical analysis was performed employing Pooled Ordinary Least Squares, while two-stage least squares regression was applied for alleviating possible issues of endogeneity.
The study findings demonstrate a significant and positive effect of women in boardrooms on ESG outcomes. Furthermore, institutional ownership weakens this positive effect as a moderating variable. Remarkably, the COVID-19 outbreak led to enhanced ESG performance. The robustness of the study results is further reinforced by additional tests using different metrics for the key variables. Moreover, the findings reinforce critical mass theory.
To the best of the authors’ knowledge, it is the first empirical analysis to investigate how institutional ownership moderates the relationship between women directors and ESG ratings in Egypt and the Middle East and North Africa (MENA) region. It also represents the first empirical attempt to examine COVID-19 as a moderating variable in this relationship and to apply the perspective of critical mass theory to explore the BGD–ESG nexus in Egypt.
This study examines the relationship between environmental, social, and governance (ESG) performance and investment efficiency and investigates whether board gender diversity moderates this relationship among Saudi listed firms. Using a sample of non-financial companies listed on the Saudi Stock Exchange (Tadawul) with available ESG scores over the period 2015–2023, the study employs panel regression analysis to assess the impact of ESG performance on investment efficiency. The findings indicate that higher ESG performance is associated with a greater tendency toward overinvestment rather than improved investment efficiency. However, board gender diversity significantly weakens this relationship, indicating a moderating effect of female board representation. The results remain robust across alternative specifications. This study advances to the ESG and corporate governance literature by providing empirical evidence from Saudi Arabia, an emerging market undergoing significant institutional reforms under Vision 2030 and highlights the importance of board gender diversity in improving the effectiveness of firms’ sustainability strategies.
Belal Ali Abdulraheem Ghaleb· International Journal of Fin...· 0 citations
This study aims to examine the impact of Environmental, Social and Governance (ESG) performance on business risk and investigates how board gender diversity moderates this relationship.
Using panel data from 367 listed firms in Portugal and Spain over the period 2013–2023, this study uses a two-step system generalised method of moments to address endogeneity and dynamic effects.
The results show that ESG performance and board gender diversity reduce business risk under agency and signalling theory. However, their interaction is associated with higher business risk. This study explains this finding through a governance complexity effect, where the joint implementation of ESG strategies and gender-diverse boards increases coordination costs, intensifies board deliberations and creates uncertainty in short-term execution, which outweighs the individual risk reduction benefits.
This study contributes to the literature in three main areas. First, it jointly examines ESG performance and board gender diversity rather than treating them as independent mechanisms. Second, it models gender diversity as a moderating factor, thereby uncovering non-linear governance effects. Third, it provides novel evidence from the Iberian context, a setting where ESG and diversity are strongly shaped by regulatory pressures. By identifying a governance complexity effect, the study shows that governance mechanisms are not purely complementary and may generate short-term trade-offs in firms’ risk profiles.
Rui Guedes, E. Neves, E. S. Vieira· Corporate Governance : The i...· 0 citations
Type of the article: Research ArticleAbstractThis study examines the relationship between family ownership and investment efficiency in the Middle East and North Africa (MENA) region by investigating the mediating role of environmental, social, and governance (ESG) performance and the moderating role of board gender diversity. Using a sample of non-financial firms from eight MENA countries (Saudi Arabia, Egypt, Jordan, Kuwait, United Arab Emirates, Qatar, Oman, and Bahrain) over the period 2015–2023, comprising 3,245 firm-year observations, and ESG data obtained from Refinitiv, the analysis employs firm fixed-effects and system GMM estimations. The results indicate that family ownership is positively associated with investment efficiency (β = 0.044, p < 0.01). Family ownership also has a positive effect on ESG performance (β = 0.118, p < 0.01), while ESG performance is positively associated with investment efficiency (β = 0.039, p < 0.01). Further analysis reveals that ESG performance partially mediates the relationship between family ownership and investment efficiency. Moreover, board gender diversity strengthens the positive effect of ESG performance on investment efficiency (β = 0.001, p < 0.01), indicating that firms with greater female board representation are better able to translate sustainability engagement into efficient capital allocation. The findings highlight the complementary roles of family ownership, ESG performance, and board gender diversity in enhancing investment efficiency in emerging markets. These results provide important implications for policymakers, investors, and corporate leaders seeking to promote sustainable governance and efficient investment decisions in the MENA region.
Isam Saleh, A. H. Amoush, Abdallah Alkhawaja· Investment Management & Fina...· 0 citations
This study addresses the ongoing debate on the environmental, social and governance (ESG)–financial performance nexus by examining whether ESG performance enhances firm profitability and whether corporate governance mechanisms condition this relationship in an emerging market context.
The empirical analysis relies on a panel of 32 firms listed on the Casablanca Stock Exchange over the period 2018–2023 (192 firm-year observations). Panel regressions are estimated using fixed effects models to control for unobserved time-invariant heterogeneity and mitigate omitted variable bias. The model incorporates key financial controls (leverage, asset tangibility and firm age) as well as a comprehensive set of governance mechanisms, including board size, gender diversity, ownership structure and ownership concentration.
The results reveal a positive and statistically significant association between ESG performance and accounting profitability (ROA), indicating that sustainability engagement is associated with tangible economic benefits in the Moroccan context. However, the moderating role of governance mechanisms appears limited, as most interaction effects are statistically insignificant. Governance variables mainly exert direct effects on financial performance, suggesting that governance functions primarily as a structural determinant of firm discipline rather than as a systematic amplifier of ESG-related returns.
The findings suggest that ESG integration may generate financial value even in institutional environments undergoing gradual development. For managers, investors, and policymakers, the results highlight the importance of substantive sustainability strategies that go beyond formal governance configurations.
By jointly examining ESG performance, financial outcomes and governance mechanisms in a North African emerging market, this study provides context-specific evidence and refines the understanding of how sustainability and governance interact in shaping firm performance.
Unknown authors· Management & Sustainabil...· 0 citations
This study examines whether environmental, social and governance (ESG) performance is incorporated into market valuation in European listed firms and whether this association is conditioned by executive gender diversity.
Using an unbalanced panel of 430 firms from a major European benchmark over 2010–2023, we estimate firm- and year-fixed effects models with Driscoll–Kraay standard errors. Tobin's Q is the primary valuation proxy, with market-to-book (MTB) ratios used for robustness. ESG was analysed at the composite and pillar levels, and moderation was tested via interaction specifications with executive gender diversity, complemented by sector-split estimations.
The findings of this study reveal that ESG performance is not priced uniformly; it is positively associated with Tobin's Q with a lag but discounted under MTB. This suggests delayed market incorporation and greater scepticism under equity book valuation anchors. The findings further reveal that executive gender diversity (averaging approximately 15% female executives) weakens the marginal ESG–valuation association, especially for environmental and governance dimensions.
Managers should treat ESG and executive composition as a bundled signal set and clearly communicate how ESG initiatives translate into observable operating and governance outcomes. Investors and regulators should interpret ESG “premia” as timing- and metric-contingent, rather than automatic.
By distinguishing between executive and board gender diversity, this study advances a leadership-conditioned account of ESG pricing consistent with signalling and agency mechanisms, clarifying when overlapping governance-related signals dilute the incremental valuation of ESG.
Saqer AL-Tahat, Zaid Jaradat, Sakhr M. Bani-Khaled· Journal of Business and Soci...· 0 citations
This study investigates how competitive business strategy shapes the relationship between board gender diversity and ESG performance in Asian emerging economies. Integrating resource dependence theory, upper echelons theory, and Porter's competitive strategy framework, we examine whether the ESG effect of female board representation differs between cost leadership and differentiation strategies. Using an unbalanced panel of 64,427 firm‐year observations from publicly listed firms between 2015 and 2023, we find that board gender diversity is positively associated with ESG performance. Contrary to our hypothesis, this relationship is stronger in cost leadership firms than in differentiation‐oriented firms. Robustness tests using a critical mass indicator and lagged explanatory variables confirm the main findings. These results suggest that gender‐diverse boards may serve as a corrective governance mechanism in efficiency‐oriented firms, where ESG concerns may be less naturally embedded in competitive strategy. This study advances strategy–governance research by demonstrating that the ESG value of board gender diversity is contingent upon firms' strategic orientation. It also highlights the importance of aligning board composition and business strategy to enhance sustainable corporate performance in emerging markets.
Wahyu Junaedi, B. Tjahjadi, Wiwiek Dianawati· Business Strategy & Deve...· 0 citations
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