Hossam Sharawi, Rabia Sohail
ABSTRACT
This study investigates the role of gender diversity as a moderating factor in the relationship between Environmental, Social, and Governance (ESG) disclosure and financial performance among non-financial companies listed on the Saudi Stock Exchange. Utilizing a multi-method analytical framework—including OLS regression, panel data analysis, quantile regression, mediation, moderation, and two-stage least squares (2SLS)—the research offers robust empirical evidence that ESG disclosure positively influences key financial indicators such as return on assets (ROA), return on equity (ROE), and firm value. Notably, the results reveal that gender diversity in boardrooms significantly strengthens the ESG–performance link, acting as a strategic governance lever that enhances transparency and stakeholder trust. The study also finds that this relationship is more pronounced among high-performing firms, as indicated by quantile regression, and remains consistent when controlling for endogeneity using 2SLS techniques. These findings have critical implications for corporate governance reforms, sustainability practices, and regulatory policies in emerging markets. The study contributes to the growing ESG literature by integrating corporate governance dimensions into the sustainability–performance framework and provides actionable insights for investors, regulators, and policymakers seeking to promote inclusive and responsible corporate behavior.
