Do ESG disclosures and women leadership influence investor sentiment? Evidence from emerging markets

Purpose It is evident that there is increasing recognition of gender diversity’s significance and the growing emphasis on ESG considerations in investment decisions in modern-day corporations. Therefore, this study aims to provide empirical evidence on how women’s leadership affects and shapes investor sentiments towards a firm’s sustainability practices and disclosures, particularly in emerging markets. Design/methodology/approach Drawing upon a dataset comprising data from 450 listed firms across BRICS countries from 2016 to 2022, the current study employs a robust empirical framework, utilising a fixed effect model in a regression setting. Findings The findings indicate that women leadership consistently positively impacts investor sentiment in emerging economies. On the flip side, investors are more or less indifferent towards ESG scores, which poses serious questions on the direct efficacy of ESG reporting. However, on a silver lining, women leadership interacts with ESG to positively moderate the former’s impact on investor sentiment. Practical implications The findings emphasise the synergistic benefits of aligning women leadership with robust ESG reporting practices. Originality/value By revealing the moderating role of women leadership and challenging assumptions about the direct impact of ESG scores, we contribute fresh perspectives to the literature.