Board Gender Diversity, Corporate Social Responsibility and Financial Performance in an Emerging Market: Evidence from Peru

This study explores the relationship between board gender diversity and corporate social responsibility (CSR) in explaining the financial performance of firms listed on the Lima Stock Exchange during 2022–2023, using 242 firm year observations for 121 firms. The research addresses a broader question on how gender representation in corporate governance and engagement in social and environmental policies influence firms’ profitability and liquidity in an emerging market context. Using a multiple linear regression model, financial performance was measured through return on assets (ROA), return on equity (ROE), asset turnover (ATO), and the current liquidity ratio (LIQ). The results indicate that CSR is positively associated with profitability indicators (ROA, ROE, ATO), while board gender diversity shows a negative short term relationship with these variables. Both CSR and board gender diversity are negatively associated with liquidity, reflecting short term financial commitments arising from sustainability and inclusion initiatives. These findings suggest that the financial implications of diversity and CSR initiatives may vary across temporal horizons and institutional contexts. The study contributes empirical evidence from a Latin American emerging market and underscores the importance of evaluating corporate governance and sustainability practices by considering the short term financial trade-offs of diversity and CSR initiatives and their potential longer term implications.