Board gender diversity toward corporate social responsibility disclosure in Palestinian companies: financial performance as mediation

Abstract

Societies have witnessed significant shifts in perceptions of gender diversity and gender equality. Consequently, researchers have increased interest in understanding the impact of board of director (BOD) gender diversity on various aspects of social and economic life, including corporate social responsibility (CSR). Although several studies have explored the relationship between BOD gender diversity and social responsibility, research in this area is still limited and suffers from a lack of consistency in findings. In addition, studying the financial performance as a mediating variable provides a more complex and detailed view of this relationship. This article aims to investigate and analyse the effect of BOD gender diversity on CSRD, either directly or indirectly, by financial performance as a mediator. This study investigates a panel data analysis with a sample of 31 companies listed on the Palestine Stock Exchange from 2012 to 2021. This study used the Baron and Kenny approach to test the mediator effect for financial performance between BOD gender diversity and CSR disclosure (CSRD). The results show a significant positive direct relationship between BOD gender diversity and CSRD, and a significant positive direct relationship between BOD gender diversity and financial performance. Furthermore, the results indicate that financial performance partially mediates the relationship between BOD gender diversity and CSRD in Palestinian companies. These results may encourage companies to promote gender diversity in their structures and strategies and implement policies for recruiting women to corporate boards, which has a positive impact on the financial and social sustainability of the organization.

Keywords

• Board gender diversity
• corporate social responsibility disclosure
• financial performance
• Palestinian companies
• resource dependence theory
• Business