| dc.description.abstract | This study examines the impact of certain board qualities, such as gender
diversity and equal pay for men and women, on a company's environmental, social, and
governance (ESG) performance. ESG performance is determined using an ESG score.
This research aims to examine the factors that can exert beneficial as well as adverse
impacts on a company's environmental, social, and governance (ESG) performance.
Gender diversity on the board, gender pay parity, size of the board, number
of independence members on board, frequency of board meetings, presence of female
executive members, CSR reporting, women managers score, net income after taxes, and
total assets are some of the factors that were chosen for this research. Utilizing a
representative sample of all Australian firms listed in the S&P/ASX 200 index, spanning
the timeframe from 2014 to 2023. The research takes use of secondary data gathered
from the Eikon dataset and employs statistical analysis of panel data in order to explore
the influence that these variables have on ESG (environmental, social, and governance)
performance. This is done in order to determine the extent to which these elements have
an impact. According to the data, there is a significant and favorable connection between
the diversity of board members in terms of gender and both gender equal wages and ESG
(environmental, social, and governance) performance. This relationship is shown to be
particularly beneficial.
First, we discuss broad facts regarding the board's diversity by gender, equality
between men and women in the workplace in particular, and gender equality globally, as
well as sustainability performance (demonstrate through ESG index). Following that,
existing research on the issue is reviewed to offer a comprehensive understanding of the
definition of each variable and the implications it has on the environment, society, and
governance output. As a result, we use a variety of econometric methods, such as Fixed
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effect models, Random effect designs, and the Pooled Ordinary Least Squares model, to
investigate the relationship between independent and dependent variables. The Hausman
test is carried out in order to determine which of the three models proposed in the two way connection exhibits the highest level of efficiency. Additionally, we carry out a
critical mass test in order to ascertain the particular percentage of women that must be
present on the board (at least 30%) in order to have an effect on the dependent variable,
such as gender pay equity and environmental, social, and governance performance. Each
and every one of these explanatory variables exerts a significant amount of influence on
ESG performance, except board size and net income after taxes. Finally, we will examine
several consequences of this research and provide suggestions for the industry and future
studies as well. We provide fundamental suggestions, including the improvement of
workplace policies pertaining to gender equality. | en_US |
