The Moderating Role of Gender Diversity in the Relationship Between ESG Performance and Firm Value in ESG Leader Index Companies Listed on the IDX
Abstract
This study aims to examine the impact of ESG performance on firm performance and firm value, as well as the moderating role of gender diversity on boards of directors. The sample used in this study consists of 83 companies listed on the ESG Leader Index in 2022. Using Structural Equation Modeling- Partial Least Squares (SEM-PLS), the findings reveal that ESG performance positively influences firm performance yet exerts a short-term negative effect on firm value. Gender diversity moderates the relationship between ESG performance and firm performance, enhancing the effectiveness of ESG practices in creating sustainable firm value. However, gender diversity does not significantly moderate the relationship between ESG performance and firm valueDownloads
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