Econometric panel analysis demonstrates improved ESG performance with board gender diversity in MENA firms, highlighting national culture as a key moderating influence.
Key Points
To examine how board gender diversity influences environmental, social, and governance (ESG) performance, and to determine how national cultural dimensions moderate this relationship.
Analyzed panel data from 95 firms across 10 MENA countries covering the 2016–2021 period.
Estimated models using ordinary least squares (OLS) regression and applied two-stage least squares (2SLS) to control for endogeneity bias.
Board gender diversity demonstrated a positive and statistically significant impact on ESG performance across MENA firms.
National culture significantly moderated the relationship: masculinity exerted a negative moderating effect, whereas individualism and uncertainty avoidance exerted positive moderating effects.