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Feyisetan, Omotayo Olaleye 
ORCID: https://orcid.org/0009-0006-8616-8024 and Alkaraan, Fadi ORCID: https://orcid.org/0000-0002-6607-5692
(2026)
Board Gender Diversity and Innovation Strategies: Sectoral Effects on ESG Performance in Financial and Non-Financial Firms.
Journal of Risk and Financial Management, 19 (2).
p. 145.
doi:10.3390/jrfm19020145
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Abstract
This study empirically examines the joint effects of innovation strategy intensity and gender diversity in boardrooms on firms’ environmental, social, and governance (ESG) performance. Drawing on the Resource-Based View and Upper Echelons Theory, we analyse a panel of financial and non-financial firms listed in the FTSE 350 on the London Stock Exchange over the period 2012–2023. Using panel regression models, we find that innovation intensity is positively associated with ESG performance across both sectors. Board gender diversity also exhibits a positive relationship with ESG performance; however, the effect is economically weaker and statistically insignificant for non-financial firms. The proportion of women employees shows sector-specific effects, being negatively related to ESG performance in financial firms but positively related in non-financial firms. While women in management positions are positively associated with ESG performance in nested models, this relationship weakens in full specifications, suggesting the influence of competing organisational factors. Notably, the presence of female executives consistently enhances ESG performance across models. Overall, the findings highlight the importance of gender diversity in senior leadership for advancing ESG outcomes and raise questions about whether conventional innovation metrics adequately capture sustainability-oriented innovation. The study offers important theoretical and managerial implications.
| Item Type: | Article |
|---|---|
| Article Type: | Article |
| Additional Information: | This article belongs to the Special Issue Corporate Finance: Financial Management of the Firm |
| Uncontrolled Keywords: | Innovation strategies; Innovation intensity; R&D intensity; corporate governance; Board gender diversity; Environmental, social, and governance (ESG) performance; Innovation; UK |
| Subjects: | H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HF Commerce > HF5001 Business > HF5549 Personnel management. Employment management H Social Sciences > HG Finance > HG4001 Finance management. Business finance |
| Divisions: | Schools and Research Institutes > School of Business, Computing and Social Sciences |
| Depositing User: | Kamila Niekoraniec |
| Date Deposited: | 09 Mar 2026 23:45 |
| Last Modified: | 15 Mar 2026 09:30 |
| URI: | https://eprints.glos.ac.uk/id/eprint/15872 |
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