Board gender diversity and esg performance: the existence of critical mass theory

Abstract

The study examines the impact of gender diversity in corporate boards (BGD) on environmental, social, and governance (ESG) performance. Utilizing data from the Refinitiv database, the authors conducted research on 502 non-financial firms in Asia, including 172 companies from developed countries and 330 companies from emerging markets, from 2015 to 2022, with annual frequency, and a final sample of 4016 observations. The authors used Ordinary Least Squares regression model (OLS), Fixed Effects regression model (FEM), Random Effects regression model (REM), Generalized Least Squares regression model (GLS), and Generalized Method of Moments regression model (GMM) to estimate the variables. The research results indicate that BGD positively influences ESG performance. Additionally, having at least three female members on the board strongly strengthens this relationship. Furthermore, these results contribute additional empirical evidence for resource dependency theory, critical mass theory, and stakeholder theory. The empirical evidence addresses the research objectives and is expected to serve as a reference for corporate managers and stakeholders to consider when making decisions to enhance the ESG performance of firms.