ABSTRACT Drawing on group dynamics and synergy theory, this study examines the synergistic effects of group dynamics on female directors' influence on corporate ESG performance using data from Chinese A‐share listed companies. Results reveal contrasting impacts: both female chairpersons and female CEOs demonstrate positive synergistic effects, while female executives show negative impacts on ESG performance. This paradox stems from female executives prioritizing short‐term financial goals over ESG investments due to competence‐proving pressures. Board composition analysis indicates that age heterogeneity negatively affects ESG performance, while educational heterogeneity shows positive direct effects but negatively moderates female directors' influence. The findings advance group dynamics theory by demonstrating that optimizing female directors' ESG impact requires considering broader board synergies beyond gender diversity alone. This research provides insights for enhancing corporate governance structures and ESG performance, while suggesting new directions for investigating the relationship between corporate diversity and sustainable development.
Mei et al. (Sun,) studied this question.