The Impact of Gender Diversity on Sustainable Performance and Firm Size as a Moderating Variable

Abstract

Abstract This research investigates the impact of gender diversity on the sustainable performance of Egyptian firms, focusing on three dimensions: environmental, economic, and social. The paper tests the relationship between both the independent and dependent variables under different conditions by having firm size as its moderating variable, with firm age and leverage as control variables to maintain internal validity. A sample of 35 non-financial companies listed on the Egyptian Stock Market (EGX100) has been considered from 2018 through 2022. The independent variable, gender diversity, is quantified by counting the number of women on board while sustainable performance is measured by a unique sustainability performance index. Moreover, the data was extracted from corporate governance reports, annual reports, and ESG reports and then analyzed on STATA. An empirical study that involved descriptive statistics, pairwise correlations, and panel data regression was utilized to test the hypotheses of this study. Furthermore, the results showed an insignificant impact between gender diversity and sustainable performance, however, the relationship between both variables becomes positive when firm size is taken into account.