ABSTRACT This study investigates the relationship between gender diversity in senior corporate positions and environmental, social and governance (ESG) initiatives, alongside their impact on corporate financial performance across European Union companies. The findings support a positive and statistically significant impact of ESG initiatives on the market‐based measures of firms' financial performance, but such impact is economically higher in the case of companies in which the proportion of female executives, female board members or female middle‐managers is above the average per country. When book‐based metrics of firm performance are considered, the findings are the opposite. This disparity highlights the importance of adopting a more holistic framework for assessing ESG's financial impact, recognizing that its benefits may emerge over varying timeframes depending on the performance metric used. The results call for innovative policies to promote gender diversity and sustainable practices, aligning with UN Sustainable Development Goals.
Saona et al. (Thu,) studied this question.