ESG Disclosure and Audit Fees: The Moderating Role of Board Gender Diversity in an Emerging Market Context

Environmental, social, and governance (ESG) disclosure has become increasingly important in corporate reporting and accountability; however, evidence regarding its implications for audit pricing remains mixed and is particularly limited in emerging markets, where ESG reporting and assurance practices are still evolving. This study investigates the association between ESG disclosure and audit fees and examines whether board gender diversity moderates this relationship in the Egyptian institutional context. Using a panel dataset of 80 non-financial firms listed on the Egyptian Exchange (EGX100) from 2018 to 2023, comprising 480 firm-year observations, the study applies pooled ordinary least squares and fixed-effects regression models. Sensitivity analyses and instrumental variable estimation are employed as additional robustness and endogeneity checks. The findings indicate a significant positive association between ESG disclosure and audit fees, consistent with the argument that ESG reporting may entail additional audit complexity and risk assessment. Board gender diversity is negatively associated with audit fees and significantly attenuates the positive association between ESG disclosure and audit fees. This moderating pattern is consistent with the view that gender-diverse boards may strengthen governance and the credibility of corporate disclosure, although the underlying auditor-risk and audit-effort mechanisms are not directly tested. The study contributes to the audit-pricing and ESG literature by identifying board gender diversity as an important governance contingency in the association between ESG disclosure and audit fees within an emerging-market setting.