BOARD GENDER DIVERSITY, AUDIT COMMITTEE INDEPENDENCE AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) PERFORMANCE

Abstract

This research explores gender diversity on boards, audit committee independence and environmental, social and governance (ESG) performance, focusing on whether these factors act as substitute or complement in driving corporate ESG commitment. Through analysis involving 20,103 observations from 2011-2020, we examined data from 41 countries. The findings support resource dependence theory, revealing a positive association between female board representation and ESG performance. Furthermore, reflecting the audit committee's active monitoring role, the positive impact of board gender diversity on ESG performance is amplified in firms with more independent audit committees. These international findings suggest policy implications for promoting gender diversity and audit committee independence as strategies to enhance corporate ESG engagement globally.