Template-Type: ReDIF-Article 1.0
Author-Name: Cao, Huashen
Author-Name-First: Huashen
Author-Name-Last: Cao
Author-Email: caohuashen23@stud.assist.ac.kr
Author-Workplace-Name: Seoul School of Integrated Sciences and Technologies (aSSIST University), Seoul, 03767, South Korea
Title: ESG and Corporate Performance: The Moderating Role of TMT Functional Diversity
Abstract: This study investigates the impact of Environmental, Social, and Governance (ESG) on corporate performance, with a focus on the moderating role of top management team (TMT) functional diversity. Utilizing a panel dataset of Chinese A-share listed companies from 2009 to 2020, we find a significant positive association between ESG performance and corporate performance, with TMT functional diversity serving as a positive moderator. Building on these findings, we recommend that firms place emphasis on TMT diversity, cross-functional collaboration, and ESG-related expertise to enhance ESG strategy implementation. The study demonstrates that leveraging the functional diversity of the TMT can help firms better formulate and implement ESG strategies, thereby improving long-term corporate performance and sustainability.
Keywords: Environmental, Social, and Governance, Corporate Performance, Top Management Team, Diversity, Moderating Effect
Journal: International Journal of Economics and Financial Issues
Pages: 327-333
Volume: 15
Issue: 4
Year: 2025
Month: 06
DOI: 10.32479/ijefi.19355
File-URL: https://econjournals.com/index.php/ijefi/article/download/19355/9029
File-Format: application/pdf
Handle: RePEc:eco:journ1:v:15:y:2025:i:4:id:19355