GENDER DIVERSITY AND ESG PERFORMANCE: THE MODERATING ROLE OF BLOCKHOLDER OWNERSHIP
DOI:
https://doi.org/10.24252/assets.v16i2.67796Keywords:
Blockholder Ownership, ESG, Gender Diversity, Indonesia, Ordinary Least SquareAbstract
Purpose: This study examines the effect of gender diversity on ESG performance and the moderating role of blockholder ownership.
Method: Using OLS regression, this study analyzes an unbalanced panel of 413 firm-year observations from companies listed on the Indonesia Stock Exchange during 2018–2024, selected through purposive sampling. ESG data were obtained from Refinitiv.
Findings: Gender diversity positively impacts on ESG performance when measured by both the proportion of female directors (FEMALE) and the Blau Index (BLAU). In addition, the interaction terms between blockholder ownership and gender diversity are significantly positive, indicating that ownership concentration strengthens the positive effect of gender diversity on ESG performance. The robustness analysis further confirms that the positive effect of gender diversity is evident only among firms with higher blockholder ownership.
Implications: Firms should promote gender-diverse boards and maintain effective governance mechanisms to maximize ESG performance.
Originality/Value: This study contributes to the literature by demonstrating that the effectiveness of gender diversity depends on ownership structure, particularly in Indonesia, where ownership concentration is high and female board representation remains relatively low.
References
Ademi, B., & Klungseth, N. J. (2022). Does It Pay To Deliver Superior ESG Performance? Evidence From US S&P 500 Companies. Journal of Global Responsibility, 13(4), 421–449. https://doi.org/10.1108/JGR-01-2022-0006
Agnese, P., Arduino, F. R., Bruno, E., & Vento, G. A. (2024). On The Road to Sustainability: The Role of Board Characteristics in Driving ESG Performance in Africa. Socio-Economic Planning Sciences, 95. https://doi.org/10.1016/j.seps.2024.101994
Ahmad, N., Ting, I. W. K., & Darun, M. R. (2020). The impact of ownership concentration on firm sustainability: Evidence from Malaysian top 200 public listed firms. International Journal of Business Excellence, 22(3), 283–300.
Al Amosh, H., & Khatib, S. F. A. (2022). Ownership structure and environmental, social and governance performance disclosure: the moderating role of the board independence. Journal of Business and Socio-Economic Development, 2(1), 49–66. https://doi.org/10.1108/jbsed-07-2021-0094
Ali, M. M., Ghani, E. K., Hasnan, S., & Handayani, S. (2024). The influence of board gender diversity and ownership structure on integrated reporting: Evidence from Malaysia. International Journal of Management and Sustainability, 13(3), 535–553. https://doi.org/10.18488/11.v13i3.3832
Atalay, M. O., Altin, M., & Al Ani, M. K. (2025). From Diversity to Sustainability: How Board Meeting Frequency, Financial Performance and Foreign Members Enhance the Board Gender Diversity - ESG Performance Link. Borsa Istanbul Review, 25(3), 552–567. https://doi.org/10.1016/j.bir.2025.02.007
Baba, B. U., & Baba, U. A. (2021). The effect of ownership structure on social and environmental reporting in Nigeria: the moderating role of intellectual capital disclosure. Journal of Global Responsibility, 12(2), 210–244. https://doi.org/10.1108/JGR-06-2019-0060
Borges, D. M., & Silva, D. M. da. (2023). Ownership Concentration of Equity Shares With and Without Voting Rights : Does It Influence CSR Voluntary Disclosure ? Concentração de Propriedade em Ações Com e Sem Direito a Voto : Há Influência na Divulgação Voluntária de RSC ? Brazilian Business Review, 21(5). https://doi.org/https://doi.org/10.15728/bbr.2022.1404.en BBR,
Candy, C., Joycelin, J., Hesniati, H., & Cuandra, F. (2024). How Does Board Gender Diversity Impact Firm Performance? The Mediation Effect of Dividend Payout Ratio. Jwm (Jurnal Wawasan Manajemen), 12(3), 215–236. https://doi.org/10.20527/jwm.v12i3.303
Cho, Y., Kim, S., You, J., Moon, H., & Hyoyong Sung. (2021). Application of ESG measures for gender diversity and equality at the organizational level in a Korean context. European Journal of Training and Development, 45(4–5), 346–365. https://doi.org/10.1108/EJTD-05-2020-0090
Chou, T. K., & Buchdadi, A. D. (2018). Executive’s compensation, good corporate governance, ownership structure, and firm performance: A study of listed banks in Indonesia. Journal of Business and Retail Management Research, 12(3), 79–91. https://doi.org/10.24052/jbrmr/v12is03/art-07
Donkor, A., Trireksani, T., & Djajadikerta, H. G. (2023). Board Diversity and Corporate Sustainability Performance: Do CEO Power and Firm Environmental Sensitivity Matter? Sustainability (Switzerland), 15(23). https://doi.org/10.3390/su152316142
Eissa, A. M., Hamdy, A., & Diab, A. (2024). Governmental Ownership, Board Gender Diversity, and ESG Performance: Evidence from an Emerging Market. Sustainability (Switzerland), 16(16), 6963. https://doi.org/10.3390/su16166963
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman Publishing imprint. https://doi.org/10.1017/CBO9781139192675
Fuadah, L. L., Mukhtaruddin, M., Andriana, I., & Arisman, A. (2022). The Ownership Structure, and the Environmental, Social, and Governance (ESG) Disclosure, Firm Value and Firm Performance: The Audit Committee as Moderating Variable. Economies, 10(12). https://doi.org/10.3390/economies10120314
Gavana, G., Gottardo, P., & Moisello, A. M. (2024). The impact of board gender diversity on ESG disclosure. A contingency perspective. Meditari Accountancy Research, 33(7), 1–29. https://doi.org/10.1108/MEDAR-07-2024-2567
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis. In Cengage Learning (8th editio). Cengage Learning.
Hesniati, H., Barahama, S. M. T., Krisyadi, R., Candy, C., & Arviano, H. (2026). Do Owners Matter ? The Role of Ownership Concentration in the Green Intellectual Capital-Sustainability Nexus. Global Business & Finance Review, 4(April), 29–42. https://doi.org/doi.org/10.17549/gbfr.2026.31.4.29 GLOBAL
Hesniati, Vernando, L., Haryanto, H., & Arviano, H. (2024). Board Gender Diversity and its Impact on Firm Risk-Taking. JDM (Jurnal Dinamika Manajemen), 15(1), 1–9. http://jdm.unnes.ac.id
Hsieh, C., Irene Wei Kiong Ting, Asif, J., & Le, H. T. M. (2020). The role of controlling shareholders in determining investments of intellectual capital among Taiwanese semiconductor companies. Journal of Intellectual Capital, 21(1), 1469–1930. https://doi.org/10.1108/JIC-05-2019-0091
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Cost and Ownership Structure. Journal of Financial Economics, 3(4), 305–360.
Joni, J., Ahmed, K., & Hamilton, J. (2020). Politically connected boards, family business groups and firm performance: Evidence from Indonesia. Journal of Accounting and Organizational Change, 16(1), 93–121. https://doi.org/10.1108/JAOC-09-2019-0091
Kim, S., & Li, Z. (2021). Understanding the Impact of ESG Practices in Corporate Finance. Sustainability (Switzerland), 13(7), 3746. https://doi.org/10.3390/su13073746
Kusno, J. I., Hartanto, F. T., & Trilaksono, T. (2024). ESG Scores’ Impact on Portfolio Performance, An Evidence from Indonesia. International Research Journal of Business Studies, 17(2), 199–212. https://doi.org/10.21632/irjbs.17.2.199-212
Nicolò, G., Zampone, G., Sannino, G., & De Iorio, S. (2022). Sustainable Corporate Governance and Non-Financial Disclosure in Europe: Does the Gender Diversity Matter? Journal of Applied Accounting Research, 23(1), 227–249. https://doi.org/10.1108/JAAR-04-2021-0100
Odriozola, M. D., Blanco-González, A., & Baraibar-Diez, E. (2024). The Link of ESG Performance and Board Gender Diversity in European Firms. Corporate Social Responsibility and Environmental Management, 31(6), 5656–5669. https://doi.org/10.1002/csr.2881
OECD. (2024). Mobilising ASEAN Capital Markets for Sustainable Growth. https://doi.org/https://doi.org/10.1787/196b5bde-en
Omenihu, C. M., Abdrakhmanova, M., & Koufopoulos, D. N. (2025). Board Gender Diversity and Environmental, Social, and Governance (ESG) Disclosure in Developed Countries. Administrative Sciences, 15(4), 1–26. https://doi.org/10.3390/admsci15040141
Pangestu, N. P. A., & Isbanah, Y. (2026). Pengaruh environmental, social, and governance (ESG) terhadap kinerja keuangan dengan CEO power sebagai variabel moderasi pada perusahaan sektor energy tahun 2021-2023. Jurnal Ilmu Manajemen, 14(1), 21–40. https://doi.org/doi.org/10.26740/jim
Pareek, R., Sahu, T. N., & Gupta, A. (2023). Gender diversity and corporate sustainability performance: empirical evidence from India. Vilakshan - XIMB Journal of Management, 20(1), 140–153. https://doi.org/10.1108/xjm-10-2020-0183
Rahi, A. F., Akter, R., & Johansson, J. (2022). Do Sustainability Practices Influence Financial Performance? Evidence From the Nordic Financial Industry. Accounting Research Journal, 35(2), 292–314. https://doi.org/10.1108/ARJ-12-2020-0373
Suprapto, Y., Agustin, I. N., & Putri, A. A. (2025). Does Profitability Matter? The Dual Role of ROA and ROE in the ESG–Firm Value Relationship. Journal of Enterprise and Development (JED), 7(2), 358–369. https://doi.org/10.20414/jed.v7i2.13447
Tania, K. S., & Hesniati, H. (2022). The effect of gender diversity on firm performance in Indonesia. Jurnal Manajemen Strategi Dan Aplikasi Bisnis, 5(2), 267–284. https://doi.org/10.36407/jmsab.v5i2.667
Wooldridge, J. M. (2013). Intoductory Econometrics. In Cengage Learning.
Yang, L., Ye, M., Wang, H., & Lu, W. (2024). Female Power, Ownership and ESG Decoupling: Evidence from China. International Journal of Gender and Entrepreneurship, 16(3), 341–366. https://doi.org/10.1108/IJGE-12-2023-0303
Yavuz, A. E., Kocaman, B. E., Dogan, M., Hazar, A., Babuscu, S., & Sutbayeva, R. (2024). The Impact of Corporate Governance on Sustainability Disclosures : A Comparison from the Perspective of Financial and Non-Financial Firms. Sustainability, 16, 8400. https://doi.org/https:// doi.org/10.3390/su16198400
Yoon, B., Lee, J. H., & Cho, J. H. (2024). Corporate Social Responsibility and Financial Performance: New Evidence from the Korean Market. SAGE Open, 14(2), 1–18. https://doi.org/10.1177/21582440241255196
Zhou, W., & Lok, C.-L. (2024). Does Board Gender Diversity Moderate the Relationship between Institutional Ownership and ESG Performance? Evidence from China. International Journal of Academic Research in Accounting, Finance and Management Sciences, 14(4), 449–466. https://doi.org/10.6007/ijarafms/v14-i4/23182
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Hesniati, Ivania Maretha Gladwin, Isnaini Nuzula Agustin
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
