Does Gender Diversity on the Board Matter for ESG Performance?: Evidence From India

Abstract

The importance of gender diversity on corporate boards has increased in recent years because of its potential impact on Environmental, Social, and Governance (ESG) activities. This study investigates the link between gender diversity on corporate boards and the disclosure of ESG policies in Indian firms. Our study indicates a positive relationship between gender diversity and ESG performance. We used panel regression analysis on a sample of 250 companies that are publicly traded on India's National Stock Exchange (NSE). Companies that have a greater representation of women on their boards of directors are more likely to provide more extensive disclosures about ESG activities. There is a positive correlation between the involvement of female directors and the degree of transparency and comprehensiveness in ESG reporting. The presence of a diverse range of genders on boards can enhance the quality of disclosures by fostering a heightened emphasis on sustainability and ethical issues, as well as including a broader range of opinions.