Does diversity matter? Examining the association between board gender inclusion and greenwashing practices in ASEAN-5 countries

Purpose Although board gender inclusion has often been associated with greater engagement in sustainability initiatives, the rise of greenwashing raises questions about the authenticity of such commitments. Despite growing global attention, empirical evidence on this issue remains limited in the Association of Southeast Asian Nations (ASEAN) context. This study examines the association between board gender inclusion and greenwashing practices in ASEAN-5 countries (Indonesia, Malaysia, Singapore, Thailand and the Philippines). Furthermore, it explores the moderating role of chief executive officer (CEO) duality, firm-level and institutional heterogeneity and critical mass dynamics in relation to greenwashing. Design/methodology/approach Our study uses an unbalanced panel of 322 nonfinancial listed companies across ASEAN-5 during 2016–2023. Data were obtained from Bloomberg, the London Stock Exchange Group and the World Bank. The analysis uses fixed-effect models with cluster-robust standard errors and a two-step generalized method of moments approach. Findings Board gender inclusion is associated with lower greenwashing. However, this association weakens when CEO duality is present. The analysis further indicates that board gender inclusion may mitigate greenwashing primarily among firms with high profitability, low leverage and small size, as well as in countries with stronger regulatory quality. In addition, the effect of board gender inclusion exhibits a critical mass threshold (approximately 20% of total board members), suggesting a meaningful level at which greenwashing may be reduced. Originality/value This study fills a critical gap in the literature on gender-diverse boards and greenwashing within the ASEAN context. By integrating the moderating role of CEO duality and examining critical mass theory, our study offers new empirical insight into how board gender inclusion may influence the integrity of corporate sustainability practices. Additionally, this study develops an alternative dummy-variable measure of greenwashing.