Sustainable corporate governance and gender diversity on corporate boards: evidence from COVID-19. Issue 1 (31st December 2022)

• Record Type: Journal Article
• Authors: Naeem, Muhammad Abubakr; Karim, Sitara; Nor, Safwan Mohd; Ismail, Rusmawati
• Is Part Of: Ekonomska istraživanja. Volume 35:Issue 1(2022)
• Page Start: 5824
• Page End: 5842
• Publication Date: 2022-12-31
• Subjects: Gender diverse boards -- COVID-19 -- sustainable corporate governance -- S-GMM; M14 -- G32 -- G34 -- G38; Economics -- Research -- Periodicals; Economics -- Research; Electronic journals; 330.072
• DOI: 10.1080/1331677X.2022.2038649
• Languages: English
• ISSNs: 1331-677X

Abstract

Abstract: The unprecedented challenges caused by the COVID-19 pandemic have led to a need to re-examine sustainable corporate governance practices. Within this context, the current study investigates the moderated effect of gender-diverse corporate boards on sustainable corporate governance practices in Malaysian financial and non-financial firms during the period 2011–2020, employing the dynamic estimator (S-GMM). During the COVID-19 pandemic, a negative relationship between ownership constructs and Global Reporting Initiative (GRI) indicators is observed in non-financial firms, whereas the opposite is reported for financial firms. Moreover, the moderated effect of gender-diverse boards is only substantiated in financial firms. The findings reveal that sustainable corporate governance is practised in financial firms but not in non-financial firms. Particularly, we draw significant implications for policymakers and regulatory bodies of Malaysia to carefully monitor the implementation of sustainable corporate governance given uncertain circumstances of COVID-19 pandemic. Further, our study is beneficial for academics, practitioners, and research scholars for their future research endeavours.