The Influence of ESG on Corporate Performance: The Role of Gender Diversity of The Board of Commissioners as a Moderating Variable

Abstract

This study aims to examine the influence of Environmental, Social, and Governance (ESG) on company performance and the moderating role of board gender diversity in consumer cyclical and non-cyclical companies listed on the Indonesia Stock Exchange for the 2020–2023 period. This study uses a quantitative approach using panel data regression analysis and Moderated Regression Analysis (MRA). The study sample consisted of 102 companies with a total of 408 observations. Company performance variables were proxied using Return on Assets (ROA) and Return on Equity (ROE). The results indicate that ESG has no significant effect on ROA or ROE. However, board gender diversity has been shown to moderate the relationship between ESG and ROA. These findings suggest that the effectiveness of ESG practices in improving company performance is significantly influenced by the quality of corporate governance, particularly diversity in the board structure.