Driving Financial Performance: The Synergy of Gender Diversity, Sustainable Product Innovation, and Socially Responsible Investment

ABSTRACT This study investigates the impact of gender diversity in management (GIM) on corporate financial performance (CFP) in sustainable practices, focusing on the moderating effects of sustainable product innovation (SPI) and socially responsible investment (SRI) ownership. Structural equation modelling was used to test hypotheses using data from companies across various sectors on the Indonesia Stock Exchange. The results show that GIM enhances CFP significantly. Even though SPI and SRI ownership positively influence financial outcomes, the effect tends to diminish the direct impact of GIM on CFP. The findings highlight the complex relationship between GIM and CFP, indicating that the interaction between gender diversity and sustainability investments is more nuanced than previously assumed, shaped by market dynamics, regulatory frameworks, or firm‐specific strategies in Indonesia. These results contribute to the growing discourse on ESG and gender governance in emerging economies, offering practical implications for aligning inclusivity with sustainable financial performance in Indonesia.