Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC Region

Our study explores how ESG performance affects corporate misconduct (CM) in Gulf Cooperation Council (GCC) firms and whether having more women on corporate boards influences this relationship. Using logistic regression and using data collected from GCC firms, we analyse the moderating effect of boar...

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Main Authors: Laila Aladwey, Mohamed Fawzy Mohamed Elsayed, Ahmed Diab
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/5/97
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author Laila Aladwey
Mohamed Fawzy Mohamed Elsayed
Ahmed Diab
author_facet Laila Aladwey
Mohamed Fawzy Mohamed Elsayed
Ahmed Diab
author_sort Laila Aladwey
collection DOAJ
description Our study explores how ESG performance affects corporate misconduct (CM) in Gulf Cooperation Council (GCC) firms and whether having more women on corporate boards influences this relationship. Using logistic regression and using data collected from GCC firms, we analyse the moderating effect of board gender diversity (BGD) on the relationship between ESG and CM. Our findings show that strong ESG performance reduces CM, and greater BGD further decreases misconduct. Moreover, gender-diverse boards strengthen the link between ESG and lower CM rates. This study contributes to the literature by examining how BGD influences the ESG-CM relationship in the GCC region. The current findings are valuable for investors, businesses, and policymakers. Investors should prioritize companies with strong ESG practices and diverse boards to minimize the risks they might face. Businesses should integrate female directors on boards to enhance ethical practices. Policymakers can promote corporate responsibility by incentivizing gender diversity and ESG adoption, which is crucial for a more transparent and accountable business environment.
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series Risks
spelling doaj-art-cdec3c58fbf74dc7b1d9be28a5c4f2d32025-08-20T02:33:58ZengMDPI AGRisks2227-90912025-05-011359710.3390/risks13050097Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC RegionLaila Aladwey0Mohamed Fawzy Mohamed Elsayed1Ahmed Diab2Accounting Department, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi ArabiaAccounting Department, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi ArabiaAccounting Department, Prince Sultan University, Riyadh 12435, Saudi ArabiaOur study explores how ESG performance affects corporate misconduct (CM) in Gulf Cooperation Council (GCC) firms and whether having more women on corporate boards influences this relationship. Using logistic regression and using data collected from GCC firms, we analyse the moderating effect of board gender diversity (BGD) on the relationship between ESG and CM. Our findings show that strong ESG performance reduces CM, and greater BGD further decreases misconduct. Moreover, gender-diverse boards strengthen the link between ESG and lower CM rates. This study contributes to the literature by examining how BGD influences the ESG-CM relationship in the GCC region. The current findings are valuable for investors, businesses, and policymakers. Investors should prioritize companies with strong ESG practices and diverse boards to minimize the risks they might face. Businesses should integrate female directors on boards to enhance ethical practices. Policymakers can promote corporate responsibility by incentivizing gender diversity and ESG adoption, which is crucial for a more transparent and accountable business environment.https://www.mdpi.com/2227-9091/13/5/97board gender diversityESGsustainabilitymisconductGCC
spellingShingle Laila Aladwey
Mohamed Fawzy Mohamed Elsayed
Ahmed Diab
Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC Region
Risks
board gender diversity
ESG
sustainability
misconduct
GCC
title Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC Region
title_full Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC Region
title_fullStr Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC Region
title_full_unstemmed Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC Region
title_short Breaking Barriers: Gender Diversity, ESG, and Corporate Misconduct in the GCC Region
title_sort breaking barriers gender diversity esg and corporate misconduct in the gcc region
topic board gender diversity
ESG
sustainability
misconduct
GCC
url https://www.mdpi.com/2227-9091/13/5/97
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AT mohamedfawzymohamedelsayed breakingbarriersgenderdiversityesgandcorporatemisconductinthegccregion
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