Board gender diversity and firm performance: The mediating role of sustainability disclosure

Abstract This study aims to investigate the mediating role of sustainability disclosure in the relationship between board gender diversity and performance of the firm in the non‐financial listed on Amman Stock Exchange (ASE). Using data from Jordan listed firms in ASE for the period of 2014–2018, the direct effect between board gender diversity on firm performance was examined, and the indirect effect of the mediating role of sustainability disclosure was also tested. The findings showed that board gender diversity has a positive and significant effect on performance of the firm. Furthermore, the results showed that sustainability disclosure fully mediates the relationship between board gender diversity and the performance of the firm. This study contributes to the knowledge by examining the mediating role of the sustainability disclosure on the relationship between board diversity and firm performance. Integrating knowledge of gender, corporate governance and sustainability enrich the study of firm performance. Regulators, investors and managers should consider not only gender diversity as a key enabler of growth but also sustainability disclosure. By increasing the level of sustainability disclosure and having a sound governance system may improve firm performance which in turn attracts investors because sophisticated investors nowadays embed sustainability consideration into their strategies to generate positive outcomes. In addition, this study provides evidence on sustainability disclosure as a mediating variable on the relationship between board gender diversity and performance of the firm in the ASE which is one of the emerging markets.