ABSTRACT The growing emphasis on ESG performance has pressured firms to transform their business operations to become more environmentally friendly and socially responsible. Despite its importance, less attention has been paid to its drivers. Therefore, this study fills this gap by examining the static and dynamic interactions between whistleblowing and corporate board oversight indicators, as well as their joint influence on ESG performance in selected Asian emerging markets. The study uses a sample of 5631 firm‐year observations from three Asian emerging economies for the period 2010–2023. We apply both the static and dynamic panel data estimation approaches, robust to endogeneity concerns, to examine the complex two‐way and three‐way interactions between whistleblowing and board oversight measures. The results suggest that whistleblowing has a positive impact on the ESG performance of a firm. Furthermore, board size and board independence strengthen the positive relationship between whistleblowing and the ESG performance of a firm. In addition, the three‐way interaction results suggest that board gender and cultural diversities complement larger and more independent boards in strengthening the positive impact of whistleblowing on the ESG performance of a firm. This study advances theory by demonstrating that whistleblowing contributes meaningfully to firms' ESG performance, broadening understanding beyond traditional financial outcomes in emerging Asian markets. It also clarifies mixed insights on board independence and size by showing that both attributes amplify the impact. The results have several implications for policymakers, investors, and other stakeholders.
Abdullah et al. (Tue,) studied this question.
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