International Journal of Business and Economics

International Journal of Business and Economics
Volume 22, No. 3

December, 2023
Gender Diversity, Firm Performance, and ESG: Evidence from Indian M&A Participating Firms
Dr Sarika Kumar
Assistant Professor, Atlas SkillTech University, Mumbai
Dr Sheeba Kapil
Professor, Indian Institute of Foreign Trade, New Delhi
Corporate entities are expected to play a significant part in the Sustainable Development Goals by implementing sustainable practices, which are setting a new global target on sustainability. One strategy for encouraging corporations to adopt sustainable practices focuses on the composition of the board. However, the connections between the composition of boards and business sustainability practice are not scientifically investigated. The results were obtained by employing the panel dataset for Indian non-financial NSE (National Stock Exchange) listed Mergers and Acquisitions (M&A hereafter) participating firms for 2013-2022. The study reveals a positive association between board gender diversity (number of females on board) and ESG. Female leadership position positively and significantly impacts the firm performance measures: return on assets (ROA) and Tobin’s Q. Presence of females on board positively affects the firm's sustainability and can be beneficial for a firm’s necessary decision-making process. The results obtained from this study will help academicians overcome the dearth of study in the field of sustainability performance and M&As and further incorporate a broader length of ESG-related information that can be applied in the context of corporate governance. This study attempted to go beyond the available literature on gender diversity and firm performance to extend the researcher’s knowledge and highlight the probable future scope of research related to M&A and corporate governance area. This is the first study that highlights the gender diversity and sustainability relation in the context of India for the M&A participating firms.
Keywords:Gender Diversity, Board Composition, Corporate Governance, Strategy, Mergers, and Acquisitions(M&A)
JEL Classifications: J16, G3, G34