Does firm better financial performance amplify the role of women directors and their certain characteristics in promoting corporate sustainability practices?

Purpose This study aims to theorize the rarely explored moderation of firm financial performance measured by return on assets (ROA) in the nexus of various numerical representations and specific characteristics of women directors with Corporate Sustainable Practices (CSP). Design/methodology/approach This study applies ordinary least squares with panel-corrected standard errors to data collected from a stratified random sample of 330 Pakistani-listed companies, covering 2013–2022. Findings The findings explain that ROA amplifies or positively moderates the relationship of women directors – their experience, business education, independent status and its associated experience and audit committee representation – with CSP. However, positive moderation is not found for boards with a single female director unless the number of women directors increases to two or more. In contrast, with CSP, no significant moderation is observed for the nexus of women directors having executive status and its associated experience and education in fields other than business. Furthermore, ROA accentuates the positive effects of women directors’ master’s or higher qualifications on CSP more than it does for their bachelor’s or below education. Practical implications This study offers valuable practical insights for all key stakeholders that increasing ROA pronounces the positive role of various numerical representations and other characteristics of women directors in uplifting CSP in Pakistan, where its slow adoption is still a serious concern. Originality/value This study has the originality to theorize and explore the unique moderation of ROA in the association between women directors’ diverse characteristics and CSP to enrich the literature, theory, methodology and practice.

Authors

Institutions

Publication Details

Journal
Corporate Governance
Published
2025-04-01
DOI
https://doi.org/10.1108/cg-05-2024-0266
Citations
3
Primary Topic
Gender Diversity and Inequality
Type
article
Field-Weighted Citation Impact
11.60
Controls
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article

Does firm better financial performance amplify the role of women directors and their certain characteristics in promoting corporate sustainability practices?

Muhammad Zahid, Mamdouh Abdulaziz Saleh Al‐Faryan, Haseeb Ur Rahman
3 citations
Corporate Governance
Gender Diversity and Inequality
11.60
article

Does firm better financial performance amplify the role of women directors and their certain characteristics in promoting corporate sustainability practices?

Muhammad Zahid, Mamdouh Abdulaziz Saleh Al‐Faryan, Haseeb Ur Rahman
article en
3 citations

Abstract

Purpose This study aims to theorize the rarely explored moderation of firm financial performance measured by return on assets (ROA) in the nexus of various numerical representations and specific characteristics of women directors with Corporate Sustainable Practices (CSP). Design/methodology/approach This study applies ordinary least squares with panel-corrected standard errors to data collected from a stratified random sample of 330 Pakistani-listed companies, covering 2013–2022. Findings The findings explain that ROA amplifies or positively moderates the relationship of women directors – their experience, business education, independent status and its associated experience and audit committee representation – with CSP. However, positive moderation is not found for boards with a single female director unless the number of women directors increases to two or more. In contrast, with CSP, no significant moderation is observed for the nexus of women directors having executive status and its associated experience and education in fields other than business. Furthermore, ROA accentuates the positive effects of women directors’ master’s or higher qualifications on CSP more than it does for their bachelor’s or below education. Practical implications This study offers valuable practical insights for all key stakeholders that increasing ROA pronounces the positive role of various numerical representations and other characteristics of women directors in uplifting CSP in Pakistan, where its slow adoption is still a serious concern. Originality/value This study has the originality to theorize and explore the unique moderation of ROA in the association between women directors’ diverse characteristics and CSP to enrich the literature, theory, methodology and practice.

Corporate GovernanceVol. 25(7)
King Fahd University of Petroleum and Minerals (SA), Saudi Heart Association (SA), Bahria University (PK)
Openalex Percentile: Top 2%
Gender Diversity and Inequality
11.60
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