How Does “Female‐Power” in the Boardroom Contribute to Corporate ESG?—An Examination Based on a Dual Machine Learning Method

ABSTRACT The growing importance of “Female‐Power” as a driving force in corporate governance reform is becoming increasingly evident, with its influence on boards gaining greater attention within the environmental, social, and governance (ESG) domain. This study investigates the role of gender diversity on boards concerning the ESG outcomes of Chinese A‐share companies listed in Shanghai and Shenzhen between 2010 and 2023, employing a dual machine learning (DML) approach. Results indicate a robust positive association between boards with diverse gender compositions and improved ESG metrics. These boards enhance ESG outcomes through better directorial behaviors, the establishment of enduring CEO incentive strategies, and elevated disclosure standards. The positive impacts of gender diversity are especially notable in family‐run enterprises, sectors not dominated by females, and areas with advanced gender equality but weaker legal structures. Additional findings show that tangible benefits in ESG performance manifest only when boards consist of at least three women. This research provides novel insights into ESG performance catalysts and advises on the strategic placement of female directors to promote superior, sustainable corporate growth.