HOW DOES BOARD GENDER DIVERSITY DRIVE THE ESG PERFORMANCE-CASH HOLDINGS RELATIONSHIP? EVIDENCE FROM INDIA

Abstract

The purpose of this paper is to explore how gender diversity in the board influences the relationship that exists between environmental, social and governance (ESG) performance and corporate cash Holdings among Indian listed firms between 2012 and 2023. We observe the correlation between the ESG performance and cash Holdings is positive. With the help of the critical mass theory, the research recognizes that gender diversity of the board moderates the connection between ESG performance and cash holding. The study concludes that the positive relationship exists between the ESG performance and cash Holdings. In addition, we found out that gender diversity on the board is a key determinant of the association between ESG performance and cash holdings. The greater the variety of the board the greater the positive effect of ESG on cash Holdings. Such findings make it possible to conclude that the connection between the ESG performance and the cash holdings is complicated and changing. As a result of the study, we can learn more about the complexity of the ESG issues and how it impacts financial strategies of companies.