ESG Performance and Firm Value in India: The Moderating Role of Board Gender Diversity Under the Mandatory BRSR Regime
Since the Securities and Exchange Board of India (SEBI) mandated Business Responsibility and Sustainability Reporting (BRSR) for the top 1,000 listed firms, environmental, social, and governance (ESG) disclosure has shifted from a voluntary signal to a regulatory requirement, renewing debate on whether ESG performance translates into shareholder value and how board composition conditions this link. Drawing on stakeholder theory and upper echelons theory, this study examines the relationship between firm-level ESG performance and firm value (Tobin’s Q) among 210 non-financial firms listed on the NSE-500, using unbalanced panel data for the financial years 2019–20 to 2023–24 (N = 1,008 firm-years). Fixed-effects panel regression shows that ESG performance is positively associated with firm value (β = 0.184, p < .01), and that board gender diversity positively moderates this relationship (β = 0.096, p < .05), such that the ESG–value link is stronger for firms with more gender-diverse boards. Results are robust to alternative performance measures (ROA) and a two-stage least squares specification addressing endogeneity. The study contributes evidence on how governance composition shapes the financial payoff of mandatory ESG disclosure in an emerging-market regulatory setting.