The Moderating Role of Female Directors in the Relationship Between ESG and Firm Performance in Southeast Asian Countries

Abstract

This study examines the relationship between ESG (Environmental, Social, Governance) performance and firm performance, while exploring the moderating role of board gender diversity in five Southeast Asian countries (Indonesia, Malaysia, Philippines, Thailand, Vietnam). Using a fixed-effects regression model (FEM) for a panel dataset of 2,620 observations from Thomson Reuters Datastream spanning 2007–2023 to test research hypotheses. Our findings reveal that ESG positively impacts firm performance, as measured by Tobin’s Q, ROE, and ROA, with the presence of female directors not only directly enhancing performance but also amplifying ESG’s positive effect. Compared to prior studies, this research offers novel empirical evidence on the moderating influence of gender diversity in the ESG-performance nexus within Southeast Asian emerging markets, contributing a scientific basis for integrating ESG and gender equality into corporate strategies.