Year: 2025
Type: article
Abstract: This study investigates the impact of Environmental, Social, and Governance (ESG) on corporate performance, with a focus on the moderating role of top management team (TMT) functional diversity. Utilizing a panel dataset of Chinese A-share listed companies from 2009 to 2020, we find a significant positive association between ESG performance and corporate performance, with TMT functional diversity serving as a positive moderator. Building on these findings, we recommend that firms place emphasis on TMT diversity, cross-functional collaboration, and ESG-related expertise to enhance ESG strategy implementation. The study demonstrates that leveraging the functional diversity of the TMT can help firms better formulate and implement ESG strategies, thereby improving long-term corporate performance and sustainability.
DOI: 10.32479/ijefi.19355
Author: Huashen Cao
Institution: Seoul School of Integrated Sciences and Technologies
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $300
OpenAlex ID: W4411414348