The Impact of Board Gender Diversity on Environmental, Social, and Governance Ratings: The Asian Perspective.

Abstract

This study investigates the impact of Board Gender Diversity (BGD) on Environmental, Social, and Governance (ESG) performance in India and Japan. The main question is how BGD affects ESG performance in these countries. Using panel data models and fixed effects regressions on data from 105 Indian and 150 Japanese public firms, the analysis reveals that BGD significantly enhances ESG performance. The study found a more pronounced effect in Japan compared to India. A positive relationship between BGD and ESG performance was observed in both countries, with Japanese firms showing an inverse U-shaped relationship and Indian firms showing a U-shaped relationship. These findings indicate that while increasing female representation on boards generally improves ESG performance, the impact varies by country, suggesting that cultural and contextual factors play a significant moderation role.