Work

Gender Diversity, ESG Performance, and Investment Efficiency: Evidence from Saudi Arabia

Year: 2026

Type: article

Abstract: This study examines the relationship between environmental, social, and governance (ESG) performance and investment efficiency and investigates whether board gender diversity moderates this relationship among Saudi listed firms. Using a sample of non-financial companies listed on the Saudi Stock Exchange (Tadawul) with available ESG scores over the period 2015–2023, the study employs panel regression analysis to assess the impact of ESG performance on investment efficiency. The findings indicate that higher ESG performance is associated with a greater tendency toward overinvestment rather than improved investment efficiency. However, board gender diversity significantly weakens this relationship, indicating a moderating effect of female board representation. The results remain robust across alternative specifications. This study advances to the ESG and corporate governance literature by providing empirical evidence from Saudi Arabia, an emerging market undergoing significant institutional reforms under Vision 2030 and highlights the importance of board gender diversity in improving the effectiveness of firms’ sustainability strategies.

Source: International Journal of Financial Studies

DOI: 10.3390/ijfs14080220

Author: Belal Ali Ghaleb

Institution: University of Tabuk

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Gender equality, Reduced inequalities

Open Access status: gold

Estimated APC paid: $2,172