This study aims to theorize the rarely explored moderation of firm financial performance measured by return on assets (ROA) in the nexus of various numerical representations and specific characteristics of women directors with Corporate Sustainable Practices (CSP).
This study applies ordinary least squares with panel-corrected standard errors to data collected from a stratified random sample of 330 Pakistani-listed companies, covering 2013–2022.
The findings explain that ROA amplifies or positively moderates the relationship of women directors – their experience, business education, independent status and its associated experience and audit committee representation – with CSP. However, positive moderation is not found for boards with a single female director unless the number of women directors increases to two or more. In contrast, with CSP, no significant moderation is observed for the nexus of women directors having executive status and its associated experience and education in fields other than business. Furthermore, ROA accentuates the positive effects of women directors’ master’s or higher qualifications on CSP more than it does for their bachelor’s or below education.
This study offers valuable practical insights for all key stakeholders that increasing ROA pronounces the positive role of various numerical representations and other characteristics of women directors in uplifting CSP in Pakistan, where its slow adoption is still a serious concern.
This study has the originality to theorize and explore the unique moderation of ROA in the association between women directors’ diverse characteristics and CSP to enrich the literature, theory, methodology and practice.
