Board Structure and ESG Performance: The Moderating Role of Country-Level Gender Parity

Abstract

This study explores the moderating role of country-level gender parity on the association between board gender diversity, board sub-committees, and environmental, social, and governance (ESG) performance. Using a sample of European sustainable companies listed on the Euronext Vigeo Europe 120 Index from 2014 to 2023, panel data and a one-step system generalized method of moments (GMM) were applied to test the hypotheses. Results show that country-level gender parity negatively moderates the positive effect of board gender diversity on ESG performance. Furthermore, the findings also find that country-level gender parity does not moderate the association between board sub-committees and ESG performance. To extend past research, this study explores the three pillars of the ESG separately; the results reveal that country-level gender parity negatively moderates the link between CSR committees and environmental performance. Additionally, country-level gender parity negatively moderates the relationship between board gender diversity and governance performance.