Board Diversity and Corporate Social Responsibility: Evidence From Emerging Markets

ABSTRACT This study investigates the impact of board diversity on corporate social responsibility (CSR) performance in publicly listed financial firms in Jordan and Saudi Arabia over the period 2014–2021. Drawing on a hand‐collected panel dataset and a comprehensive CSR disclosure index consisting of 18 items, the analysis employs the system generalized method of moments (GMM) to address potential endogeneity concerns and ensure robust estimation. The findings reveal that in Jordan, board diversity—captured by the proportion of female, highly educated, and independent directors, as well as board size—is positively and significantly associated with CSR performance. In Saudi Arabia, similar diversity dimensions also enhance CSR outcomes, although the proportion of independent directors shows a negative and statistically significant effect. On average, Jordanian and Saudi firms disclosed 33.9% and 38.7% of CSR information, respectively, with only marginal improvement over time. These results highlight the important role of board composition in promoting CSR engagement and provide valuable insights for policymakers seeking to strengthen corporate governance and sustainability practices in emerging Arab markets.