IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v34y2025i8p11083-11105.html

Impact of Female Executive Power on Corporate ESG Performance: The Mediating Role of Managerial Self‐Interest

Author

Listed:
  • Xu Wang
  • Hanhan Han
  • Mengfei Zhao
  • Shengliang Deng

Abstract

The significance of the responsibility fulfillment capability for environmental, social, and governance (ESG) is increasing, with ESG performance becoming increasingly pivotal for firms seeking to bolster their competitive edge. This study empirically examines the correlation and mechanism between female executive power and corporate ESG performance, using regression analysis to focus on A‐share listed firms from 2012 to 2022. The results demonstrate that female executive power has a positive correlation with corporate ESG and ES performance. This positive correlation is ascribed to the mechanism by which female executive power diminishes managerial self‐interest and improves corporate ESG and ES performance. Furthermore, corporate digital transformation and regional digital finance development have a positive moderating effect on this relationship. This study expands prior scholarship on the determinants of corporate ESG performance by investigating the impact of executive gender diversity. Moreover, it elucidates how female executive power influences corporate ESG performance. These findings provide empirical evidence and theoretical insights for firms seeking to enhance their ESG performance for sustainable development.

Suggested Citation

  • Xu Wang & Hanhan Han & Mengfei Zhao & Shengliang Deng, 2025. "Impact of Female Executive Power on Corporate ESG Performance: The Mediating Role of Managerial Self‐Interest," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 11083-11105, December.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:8:p:11083-11105
    DOI: 10.1002/bse.70156
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.70156
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.70156?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hongyu Peng & Tirapot Chandarasupsang, 2023. "The Effect of Female Directors on ESG Practice: Evidence from China," IJFS, MDPI, vol. 11(2), pages 1-20, April.
    2. Satish Jayachandran & Kartik Kalaignanam & Meike Eilert, 2013. "Product and environmental social performance: Varying effect on firm performance," Strategic Management Journal, Wiley Blackwell, vol. 34(10), pages 1255-1264, October.
    3. Idais, Osama, 2020. "Locally optimal designs for multivariate generalized linear models," Journal of Multivariate Analysis, Elsevier, vol. 180(C).
    4. Shleifer, Andrei & Vishny, Robert W., 1989. "Management entrenchment : The case of manager-specific investments," Journal of Financial Economics, Elsevier, vol. 25(1), pages 123-139, November.
    5. Jingzhuo Yu & Yong-Sik Hwang, 2024. "The Interaction Effects of Board Independence and Digital Transformation on Environmental, Social, and Governance Performance: Complementary or Substitutive?," Sustainability, MDPI, vol. 16(20), pages 1-26, October.
    6. Luning Tong & Maowei Chen, 2024. "The Impact of Female Director Background on the ESG Performance of Chinese Technology Firms: A Moderating Effect Based on Risk Appetite," Sustainability, MDPI, vol. 16(23), pages 1-20, December.
    7. Anja Iseke & Kerstin Pull, 2019. "Female Executives and Perceived Employer Attractiveness: On the Potentially Adverse Signal of Having a Female CHRO Rather Than a Female CFO," Journal of Business Ethics, Springer, vol. 156(4), pages 1113-1133, June.
    8. Ioanna Boulouta, 2013. "Hidden Connections: The Link Between Board Gender Diversity and Corporate Social Performance," Journal of Business Ethics, Springer, vol. 113(2), pages 185-197, March.
    9. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    10. Shaista Wasiuzzaman & Vasanthan Subramaniam, 2023. "Board gender diversity and environmental, social and governance (ESG) disclosure: Is it different for developed and developing nations?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2145-2165, September.
    11. Shan Wu & Ying Li, 2023. "A Study on the Impact of Digital Transformation on Corporate ESG Performance: The Mediating Role of Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    12. Feng, Cong & Xiang, Kexin, 2023. "Structural power of female executives and retailer profitability: A contingent resource-based perspective," Journal of Business Research, Elsevier, vol. 168(C).
    13. Sutherland, Will & Jarrahi, Mohammad Hossein, 2018. "The sharing economy and digital platforms: A review and research agenda," International Journal of Information Management, Elsevier, vol. 43(C), pages 328-341.
    14. Powell, Melanie & Ansic, David, 1997. "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 18(6), pages 605-628, November.
    15. Luk Luk Fuadah & Mukhtaruddin Mukhtaruddin & Isni Andriana & Anton Arisman, 2022. "The Ownership Structure, and the Environmental, Social, and Governance (ESG) Disclosure, Firm Value and Firm Performance: The Audit Committee as Moderating Variable," Economies, MDPI, vol. 10(12), pages 1-16, December.
    16. Kong, Wen, 2023. "The impact of ESG performance on debt financing costs: Evidence from Chinese family business," Finance Research Letters, Elsevier, vol. 55(PB).
    17. Mustafa Disli & Mustafa Kemal Yilmaz & Farah Finn Mohamud Mohamed, 2022. "Board characteristics and sustainability performance: empirical evidence from emerging markets," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(4), pages 929-952, January.
    18. Mustafa Disli & Mustafa Kemal Yilmaz & Farah Finn Mohamud Mohamed, 2022. "Board characteristics and sustainability performance: empirical evidence from emerging markets," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(4), pages 929-952, January.
    19. Steven A. Brieger & Siri A. Terjesen & Diana M. Hechavarría & Christian Welzel, 2019. "Prosociality in Business: A Human Empowerment Framework," Journal of Business Ethics, Springer, vol. 159(2), pages 361-380, October.
    20. Bin Ke & Xinshu Mao & Bin Wang & Luo Zuo, 2021. "Top Management Team Power in China: Measurement and Validation," Management Science, INFORMS, vol. 67(10), pages 6602-6627, October.
    21. Liu, Chelsea, 2018. "Are women greener? Corporate gender diversity and environmental violations," Journal of Corporate Finance, Elsevier, vol. 52(C), pages 118-142.
    22. Baoyin Qiu & Haohan Ren & Jingjing Zuo & Bo Cheng, 2023. "Social Trust and Female Board Representation: Evidence from China," Journal of Business Ethics, Springer, vol. 188(1), pages 187-204, November.
    23. Ren, Xiaohang & Zeng, Gudian & Zhao, Yang, 2023. "Digital finance and corporate ESG performance: Empirical evidence from listed companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    24. Huang, Jiekun & Kisgen, Darren J., 2013. "Gender and corporate finance: Are male executives overconfident relative to female executives?," Journal of Financial Economics, Elsevier, vol. 108(3), pages 822-839.
    25. Khwaja Naveed & Cosmina L. Voinea & Zahid Ali & Fawad Rauf & Cosmin Fratostiteanu, 2021. "Board Gender Diversity and Corporate Social Performance in Different Industry Groups: Evidence from China," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    26. Nabil Ibrahim & John Angelidis, 2009. "The Relative Importance of Ethics as a Selection Criterion for Entry-Level Public Accountants: Does Gender Make a Difference?," Journal of Business Ethics, Springer, vol. 85(1), pages 49-58, February.
    27. Tania Singer & Ben Seymour & John P. O'Doherty & Klaas E. Stephan & Raymond J. Dolan & Chris D. Frith, 2006. "Empathic neural responses are modulated by the perceived fairness of others," Nature, Nature, vol. 439(7075), pages 466-469, January.
    28. Amina Buallay & Layla Alhalwachi, 2022. "Board gender diversity and environmental disclosure: evidence from the banking sector," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 15(3), pages 350-371, July.
    29. Javed, Muzhar & Wang, Fangjun & Usman, Muhammad & Ali Gull, Ammar & Uz Zaman, Qamar, 2023. "Female CEOs and green innovation," Journal of Business Research, Elsevier, vol. 157(C).
    30. Xianghui Meng & Peihua Zhu, 2024. "Females’ social responsibility: the impact of female executives on ESG performance," Applied Economics Letters, Taylor & Francis Journals, vol. 31(14), pages 1292-1297, August.
    31. Yalin Mo & Yuchen Che & Wenqiao Ning, 2023. "Digital Finance Promotes Corporate ESG Performance: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    32. Mehmood, Asad & De Luca, Francesco & Quach, Hao, 2023. "Investigating how board gender diversity affects environmental, social and governance performance: Evidence from the utilities sector," Utilities Policy, Elsevier, vol. 83(C).
    33. Ioannis Passas & Konstantina Ragazou & Eleni Zafeiriou & Alexandros Garefalakis & Constantin Zopounidis, 2022. "ESG Controversies: A Quantitative and Qualitative Analysis for the Sociopolitical Determinants in EU Firms," Sustainability, MDPI, vol. 14(19), pages 1-17, October.
    34. Xin Lin & Lina Yu & Jinhong Zhang & Suxu Lin & Qiming Zhong, 2022. "Board Gender Diversity and Corporate Green Innovation: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    35. Iman Babiker & Mashael Bakhit & Aida Osman Abdalla Bilal & Ayman Abdalla Mohammed Abubakr & Abubkr Ahmed Elhadi Abdelraheem, 2025. "The Effect of Female Representation on Boards on Environmental, Social, and Governance Disclosure: Empirical Evidence from Saudi Highly Polluting Industries," Sustainability, MDPI, vol. 17(6), pages 1-28, March.
    36. Yuxin Ning & Yihan Zhang, 2023. "Does Digital Finance Improve Corporate ESG Performance? An Intermediary Role Based on Financing Constraints," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    37. Gopal Krishnan & Linda Parsons, 2008. "Getting to the Bottom Line: An Exploration of Gender and Earnings Quality," Journal of Business Ethics, Springer, vol. 78(1), pages 65-76, March.
    38. Xiangwei Xie & Hongyu Zhu & Jinjing Zhao, 2024. "How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    39. Yiming Ma & Muhammad Ishfaq Ahmad & Riccardo Torelli, 2024. "Board gender diversity and ESG disclosure: The moderating role of audit committee," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(6), pages 5971-5983, November.
    40. Ishwar Khatri, 2023. "Board gender diversity and sustainability performance: Nordic evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1495-1507, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cristina Boţa‐Avram & Adriana Tiron‐Tudor, 2025. "Women on Corporate Boards and Sustainability Reporting: A Proposed Integrated Framework of Determinants and Impacts," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(5), pages 7180-7212, September.
    2. Maurizio Rocca & Neha Neha & Tiziana Rocca, 2020. "Female management, overconfidence and debt maturity: European evidence," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 713-747, September.
    3. Yu, Chang, 2023. "Board gender diversity and investment inefficiency," Journal of Economics and Business, Elsevier, vol. 124(C).
    4. Simon Ho & Annie Li & Kinsun Tam & Feida Zhang, 2015. "CEO Gender, Ethical Leadership, and Accounting Conservatism," Journal of Business Ethics, Springer, vol. 127(2), pages 351-370, March.
    5. Alaa Mansour Zalata & Collins Ntim & Ahmed Aboud & Ernest Gyapong, 2019. "Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle," Journal of Business Ethics, Springer, vol. 160(2), pages 515-534, December.
    6. Sofia Karagiannopoulou & Andreas Andronikidis & Nikolaos Sariannidis & Grigoris Giannarakis, 2025. "Is Board Gender Diversity a Superficial Goal or a Strategic Asset for CSR Performance? The Role of Critical Mass and Board Size," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(6), pages 8674-8687, November.
    7. Hussain Muhammad & Stefania Migliori & Daniela Di Berardino, 2025. "CSR as a catalyst: Examining the effects of board gender diversity on earnings management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(1), pages 963-983, January.
    8. Palvia, Ajay & Vähämaa, Emilia & Vähämaa, Sami, 2020. "Female leadership and bank risk-taking: Evidence from the effects of real estate shocks on bank lending performance and default risk," Journal of Business Research, Elsevier, vol. 117(C), pages 897-909.
    9. Abeyratna Gunasekarage & Mehdi Khedmati & Kristina Minnick & Syed Shams, 2023. "Board gender diversity and acquisition choices," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 46(4), pages 949-991, December.
    10. Yu, Zhi & Wang, Qun & Zhao, Xiangfang & Zhao, Qiong, 2025. "Do female executives play a role in corporate green business philosophy?," International Review of Financial Analysis, Elsevier, vol. 99(C).
    11. Yuting Guo & Ying Zhang & Hongfei Ruan & Yi Xiang & Yongzhi Du, 2025. "How do female CEOs affect corporate pay dispersion? The perspective of risk aversion and competition avoidance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(1), pages 419-433, January.
    12. Fernando, Guy D. & Schneible, Richard A. & Zhang, Wei, 2024. "Institutional ownership and women in the top management team," Journal of Business Research, Elsevier, vol. 170(C).
    13. Aso Abdullah, 2026. "Gender Diversity and ESG Performance: The Moderating Role of the Sustainability Committee," Business Strategy and the Environment, Wiley Blackwell, vol. 35(3), pages 3878-3897, March.
    14. Syed Shams & Kristina Minnick & Mehdi Khedmati & Abeyratna Gunasekarage, 2024. "Gender diversity and acquisitions: How female directors add value in acquisition decisions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 51(1-2), pages 113-147, January.
    15. Yakira Fernández-Torres & Clara Gallego-Sosa & Milagros Gutiérrez-Fernández, 2025. "Do women board members contribute to companies’ superior environmental performance? A literature review," Review of Managerial Science, Springer, vol. 19(5), pages 1513-1565, May.
    16. Paul B. McGuinness, 2019. "The Role of Governance and Bank Funding in the Determination of Cornerstone Allocations in Chinese Equity Offers," JRFM, MDPI, vol. 12(3), pages 1-20, July.
    17. Tran, Tam & Wilson, Craig & Yang, Fan, 2025. "Executive overconfidence, corporate investment, and institutional ownership: Evidence from Vietnam," Emerging Markets Review, Elsevier, vol. 68(C).
    18. Dah, Mustafa A. & Elgammal, Walid & Kchouri, Bilal & Marrouche, Adnan, 2025. "Do female CEOs lead more ethical firms? ESG and corporate impact," International Review of Financial Analysis, Elsevier, vol. 105(C).
    19. Inmaculada Bel‐Oms, 2025. "Determinants and consequences of environmental, social and governance controversies. Status quo and limitations of recent empirical quantitative research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(2), pages 2412-2437, March.
    20. Kara, Alper & Nanteza, Aziidah & Ozkan, Aydin & Yildiz, Yilmaz, 2022. "Board gender diversity and responsible banking during the COVID-19 pandemic," Journal of Corporate Finance, Elsevier, vol. 74(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:34:y:2025:i:8:p:11083-11105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.