Gender Diversity Impact on ESG Performance: Evidence from Indonesian and Malaysian Manufacturing Sector

Abstract

This study analyzes the impact of women's boards on ESG disclosure (community, employee, environment and government) performance in emerging markets, namely Indonesia and Malaysia. We suggest that the participation of women's boards is very beneficial for increasing social awareness of the community, employees, governance and the environment of the company and can improve overall performance and the achievement of company goals or targets, because it has an impact on increasing shareholder welfare. Concern for the sense of social, environmental and how the role of good corporate governance really supports the company's performance. Our research complements the existing literature by proposing that the positive benefits of published ESG reporting occur when companies have an effective and gender-diverse board structure, resulting in better governance. The results of this study are expected to provide long-term value for the company and increase awareness of the importance of the role of gender diversity in the managerial structure in managing good performance in the areas of governance, environment and social (community and employee) through the role of gender diversity in the company's managerial structure.

The Effect of Corporate Governance on ESG Investment Moderated by Gender Diversity on the Board of Directors

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