ESG disclosure and firm performance: do gender diversity and sustainability committee matter?

This study explores the impact of ESG disclosure (ESGD) on firm performance (FP) in Saudi Arabia. Additionally, the study investigates the moderating effect of board gender diversity (BGD) and sustainability committees (SC) in this relationship. The study sample comprises the 100 leading non-financi...

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Main Authors: Abdullah Almulhim, Abdelmoneim Bahyeldin Mohamed Metwally
Format: Article
Language:English
Published: Taylor & Francis Group 2025-08-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2025.2545610
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author Abdullah Almulhim
Abdelmoneim Bahyeldin Mohamed Metwally
author_facet Abdullah Almulhim
Abdelmoneim Bahyeldin Mohamed Metwally
author_sort Abdullah Almulhim
collection DOAJ
description This study explores the impact of ESG disclosure (ESGD) on firm performance (FP) in Saudi Arabia. Additionally, the study investigates the moderating effect of board gender diversity (BGD) and sustainability committees (SC) in this relationship. The study sample comprises the 100 leading non-financial companies listed on the Saudi stock exchange (Tadawul) from 2015 to 2022, resulting in 800 firm-year observations. Employing a fixed-effects regression model and GMM estimates, the study results revealed a significant positive impact of ESGD on FP. Furthermore, the gender diversity and sustainability committee had a positive and significant moderating impact as each of them enhanced the relationship between ESGD and FP. These results have important implications for investors, governments and company management, as the moderating function of BGD and SC emphasizes how governance structures can sway financial outcomes, particularly in emerging markets. The current study extends the debate in the literature surrounding the advantageous effects of BGD and SC on FP, especially within developing economies. Unlike prior research that primarily concentrated on a direct association between ESGD and FP, this study sheds light on how governance aspects like BGD and SC can deepen this relationship.
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spelling doaj-art-e6a6f94f1b0047a7bb14694a6b86ef242025-08-20T03:02:52ZengTaylor & Francis GroupCogent Business & Management2331-19752025-08-0112110.1080/23311975.2025.2545610ESG disclosure and firm performance: do gender diversity and sustainability committee matter?Abdullah Almulhim0Abdelmoneim Bahyeldin Mohamed Metwally1Department of Accounting, College of Business Administration, King Faisal University, Al-Ahsa, Saudi ArabiaDepartment of Accounting, College of Business Administration, King Faisal University, Al-Ahsa, Saudi ArabiaThis study explores the impact of ESG disclosure (ESGD) on firm performance (FP) in Saudi Arabia. Additionally, the study investigates the moderating effect of board gender diversity (BGD) and sustainability committees (SC) in this relationship. The study sample comprises the 100 leading non-financial companies listed on the Saudi stock exchange (Tadawul) from 2015 to 2022, resulting in 800 firm-year observations. Employing a fixed-effects regression model and GMM estimates, the study results revealed a significant positive impact of ESGD on FP. Furthermore, the gender diversity and sustainability committee had a positive and significant moderating impact as each of them enhanced the relationship between ESGD and FP. These results have important implications for investors, governments and company management, as the moderating function of BGD and SC emphasizes how governance structures can sway financial outcomes, particularly in emerging markets. The current study extends the debate in the literature surrounding the advantageous effects of BGD and SC on FP, especially within developing economies. Unlike prior research that primarily concentrated on a direct association between ESGD and FP, this study sheds light on how governance aspects like BGD and SC can deepen this relationship.https://www.tandfonline.com/doi/10.1080/23311975.2025.2545610ESGfirm performancegender diversitysustainability committeecorporate governanceemerging economy
spellingShingle Abdullah Almulhim
Abdelmoneim Bahyeldin Mohamed Metwally
ESG disclosure and firm performance: do gender diversity and sustainability committee matter?
Cogent Business & Management
ESG
firm performance
gender diversity
sustainability committee
corporate governance
emerging economy
title ESG disclosure and firm performance: do gender diversity and sustainability committee matter?
title_full ESG disclosure and firm performance: do gender diversity and sustainability committee matter?
title_fullStr ESG disclosure and firm performance: do gender diversity and sustainability committee matter?
title_full_unstemmed ESG disclosure and firm performance: do gender diversity and sustainability committee matter?
title_short ESG disclosure and firm performance: do gender diversity and sustainability committee matter?
title_sort esg disclosure and firm performance do gender diversity and sustainability committee matter
topic ESG
firm performance
gender diversity
sustainability committee
corporate governance
emerging economy
url https://www.tandfonline.com/doi/10.1080/23311975.2025.2545610
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