Financial performance under board gender diversity: The mediating effect of corporate social practices

Boukattaya, Sonia; Ftiti, Zied; Arfa, Nouha Ben; Omri, Abdelwahed

doi:10.1002/csr.2333

Cited by 10 publications

(6 citation statements)

References 93 publications

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“…This enhanced relationship with stakeholders increased the firm’s financial performance (Freeman et al , 2004), which saved the company from FD. Furthermore, this result supports the findings of Boukattaya et al (2022), Galbreath (2018) and Agustia et al (2022), who argued that the effect of women’s board participation on firm performance is not direct but rather mediated by CSR. After incorporating the mediating variable into the equation of Model 4, board national diversity shows an insignificant impact on FD.…”

Section: Resultssupporting

confidence: 89%

“…Furthermore, in the context of both developing and developed economies, testing the mediating impact of CSR in this diversity–distress relationship is an unexplored area in the existing literature. Only a few studies in the literature have examined the impact of board gender diversity (one aspect of board diversity) on firm performance, with CSR acting as a moderator (Galbreath, 2018; Boukattaya et al , 2022; E-Vahdati et al , 2018). To the best of our knowledge, no study has examined CSR as a mediating role in the diversity–distress relationship.…”

Section: Introductionmentioning

confidence: 99%

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Does corporate social responsibility mediate the relationship between board diversity and financial distress: evidence from an emerging economy?

Farooq,

Khan,

Jabri

et al. 2023

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Purpose The study hypothesized that the impact of board diversity on financial distress (FD) is not direct but rather mediated by the firm’s corporate social responsibility (CSR) activities. Consequently, the purpose of this study is to examine the impact of CSR as a mediator in the board diversity–FD relationship. Design/methodology/approach The study examined six board diversity dimensions – age, gender, nationality, education and tenure in 81 nonfinancial Pakistan Stock Exchange (PSX)-listed firms from 2010 to 2021. The CSR engagement of the sample firms is evaluated using a multidimensional financial approach and the likelihood of FD is computed using Altman’s Z-score. The system-generalized method of moments estimator is used to meet the study objectives. In addition, several tests are run to determine the robustness of the study’s findings. Findings Based on the procedure for mediation analysis outlined by Baron and Kenny (1986), the authors found that CSR is significantly inversely associated with the likelihood of FD. Second, board diversity variables age, gender and national diversity were positively associated with CSR. Third, board age, gender and national diversity are significantly inversely related to FD. Finally, it was found that there is partial mediation between board age diversity and FD, whereas full mediation is shown between board age diversity and FD and between board nationality diversity and FD. Practical implications This study provides practical insights into PSX’s board diversity for companies, regulators and policymakers. Originality/value This research studies the connection between board diversity and FD. In addition, the current study extended the analysis by testing for the first time the mediating role of CSR in the diversity–distress relationship, particularly in the context of an emerging economy.

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Section: Resultssupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Does corporate social responsibility mediate the relationship between board diversity and financial distress: evidence from an emerging economy?

Farooq,

Khan,

Jabri

et al. 2023

View full text Add to dashboard Cite

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“…In today's corporate landscape, the prominence of Environmental, Social, and Governance (ESG) factors marks a significant transformation in how businesses navigate their multifaceted roles within broader societal and environmental contexts (Boukattaya et al, 2022; Boulhaga et al, 2023; Busch & Schnippering, 2022; Durand et al, 2019; Raimo et al, 2020). In this evolving context, we aim to deepen our understanding of the complex interplay between ESG factors, corporate controversies, and financial performance.…”

Section: Introductionmentioning

confidence: 99%

ESG controversies and corporate performance: The moderating effect of governance mechanisms and ESG practices

Elamer,

Boulhaga

2024

Corp Soc Responsibility Env

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This paper investigates the relationship between Environmental, Social, and Governance (ESG) controversies and firm performance, examining the moderating influences of corporate governance structures and ESG practices. Utilizing quantitative methods, we analyze data from 5360 firm‐year observations. Our findings reveal a significant negative relation between ESG controversies and firm performance. However, well‐defined corporate governance frameworks and internal ESG strategies mitigate these adverse impacts and can transform these controversies into growth opportunities and reputation enhancement. A comparative analysis involving the United Kingdom and other European Union nations highlights the influence of geographical and regulatory contexts in shaping this dynamic. These results offer valuable insights for policymakers, corporate strategists, and investors, emphasizing the role of governance in navigating ESG controversies and enhancing firm resilience and adaptability. The study contributes to the sustainability field by providing a nuanced understanding of the interaction between ESG controversies, corporate governance, and firm performance.

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“…Second, the role of the three ESG pillars, namely the environmental pillar, the social pillar, and the governance pillar, and how they affect the above relationship has become the subject of debate among many researchers. In recent years, many authors have noticed the influence of board diversity on ESG practice (Boukattaya et al, 2022;Kahloul et al, 2022;Veltri et al, 2021). Independent directors have an important role in corporate governance (Eeckloo et al, 2004) because it helps firms improve oversight (Fama & Jensen, 1983) and reduce agency costs (Naciti, 2019).…”

Section: Introductionmentioning

confidence: 99%

Independent Board Members and Corporate Financial Performance: The Mediating of Environmental, Social, and Governance Pillars in Taiwan

Van,

2023

Preprint

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This paper examines the relationship between the ratio of independent board member to the financial performance of the company under the mediation of the three pillars of environment, society, and governance (ESG) in Taiwan. The study addresses a research gap between independent directors and corporate financial performance, an issue that is rarely discussed today. The author develops the hypotheses and tests them by applying panel data regression to the data tables taken from the Thomson Reuters Eikon database to analyze data on 173 Taiwanese companies that reported ESG from 2009 to 2021. The results show that the relationship between the ratio of independent directors and financial performance has a positive relationship. At the same time, the 3 pillars of ESG also clearly show the intermediary role in this relationship. Finally, this study provides additional insights into the relationship between the ratio of independent directors and financial performance in the Taiwan context.

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Financial performance under board gender diversity: The mediating effect of corporate social practices

Cited by 10 publications

References 93 publications

Does corporate social responsibility mediate the relationship between board diversity and financial distress: evidence from an emerging economy?

Does corporate social responsibility mediate the relationship between board diversity and financial distress: evidence from an emerging economy?

ESG controversies and corporate performance: The moderating effect of governance mechanisms and ESG practices

Independent Board Members and Corporate Financial Performance: The Mediating of Environmental, Social, and Governance Pillars in Taiwan

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