From diversity to sustainability: How board meeting frequency, financial performance and foreign members enhance the board gender diversity-ESG performance link

Abstract

This study examines the impact of board gender diversity (BGD) on Environmental, Social, and Governance (ESG) performance, with a focus on the moderating roles of financial performance (Return on Assets), board meeting frequency (BMF), and foreign board members (FBM). Panel regression analysis on 41 Turkish firms listed on Borsa Istanbul (BIST100) from 2016 to 2023 reveals a positive relationship between BGD and ESG performance. This relationship is stronger in firms with higher ROA, increased BMF, and a greater proportion of FBM. The findings suggest that diverse and internationally represented boards, combined with robust financial performance and active engagement, are key drivers of sustainable practices in emerging markets. These insights offer practical guidance for policymakers and firms, advocating for board reforms that support diversity, financial health, and proactive governance to enhance ESG performance.