Impact of female PhDs, sustainability committees, and industry-specific government experience directors on Malaysian firm performance: a human capital and social role theory perspective

Purpose This study aims to examine the relationship between corporate governance and firm performance in the context of highly-educated female directors with PhDs, those actively engaging in sustainability committees and individuals demonstrating industry-specific government experience. Design/methodology/approach The study examines sustainability-driven financial disclosures based on the task force on climate-related financial disclosures with data derived from the top 100 Bursa Malaysia Large Capital Companies across 13 sectors between 2018 and 2021. Both human capital and social role theories are applied to denote the influence of higher education on firm performance. Findings Female directors with PhDs are key to bolstering corporate governance and sustainability efforts, which increase firm performance compared to counterparts without such qualifications. Research limitations/implications The current work is confined to the emerging Malaysian economy, where sustainability and gender diversity are crucial for corporate governance. Practical implications The significance of including highly-educated female directors in corporate boards highlights their role in increasing firm value and sustainability outcomes within Malaysia and other developing markets. Social implications Corporate accountability and equitable representation can be fostered through gender diversity and highly-qualified women leaders, which mitigate environmental risks following sustainable development goals. Originality/value The study’s novelty lies in its demonstration of the significance of female PhD directors on corporate performance, thus bridging a critical knowledge gap.