Breaking barriers: the role of female executives in mitigating ESG controversies

Document Type

Article

Source of Publication

Meditari Accountancy Research

Publication Date

11-27-2025

Abstract

Purpose – This study aims to examine the role of female executives in mitigating Environmental, Social and Governance (ESG) controversies and the moderating effect of the World Governance Indicators (WGI) on this relationship. Design/methodology/approach – Using a large international sample of 54, 327 firm-year observations from 44 countries over the period 2007–2023, the study uses panel data analysis to explore the association between female executives and ESG controversies. Findings – The results indicate that firms with more female executives engage in fewer ESG controversies. The impact is more pronounced in countries with high WGI scores, emphasizing the importance of robust governance frameworks. Additional analysis reveals that female executives are associated with both a lower likelihood of engaging in ESG controversies and a reduction in their severity when they occur. Practical implications – This study highlights the need for regulatory frameworks to promote gender diversity on corporate boards and emphasizes the role of strong governance structures in enhancing ethical corporate behavior. Originality/value – This research contributes to the literature by shifting the focus from board gender diversity to executive gender diversity, providing new insights into how female leadership can reduce ESG controversies, particularly in well-governed environments.

ISSN

2049-372X

Publisher

Emerald

First Page

1

Last Page

29

Disciplines

Business

Keywords

Controversial industries, Corporate governance, ESG controversies, Female executives, WGI

Scopus ID

105024261796

Indexed in Scopus

yes

Open Access

no

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