Corporate Governance as a Driver: Enhancing ESG Performance in ASEAN Companies

Abstract

This study examines the impact of corporate governance characteristics on environmental, social, and governance (ESG) performance in ASEAN companies from 2019 to 2023. Using a sample of 298 firms from various sectors, comprising 1339 firm-year observations, the research explores how board composition, the presence of specific committees, and CEO attributes influence ESG scores. The findings indicate that larger board size, a higher proportion of women on the board, the presence of foreign board members, and more frequent board meetings are positively correlated with ESG performance. Notably, the presence of a sustainability committee has a highly significant positive impact. CEO characteristics also play a vital role, with Women CEOs being positively associated with stronger ESG performance. This research contributes to the integration of stakeholder theory and upper echelon theory within the ESG context of emerging economies. It provides practical implications for firms, regulators, and investors, offering actionable insights on optimizing governance structures to enhance ESG performance in the ASEAN region.