State ownership as a moderator in the relationship between board characteristics and ESG performance: evidence from Asia-Pacific markets
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Purpose: This paper examines how state ownership moderates the relationship between board characteristics and ESG performance in the Asia-Pacific region, emphasizing institutional contingencies often overlooked in emerging market governance research. Design/methodology/approach: The study uses an unbalanced panel of 1,175 publicly listed firms across 14 Asia-Pacific economies from 2010 to 2022. Two-way firm and year fixed-effects regressions with interaction terms are applied, complemented by robustness checks including Mundlak adjustments, cross-equation diagnostics and disaggregated ESG pillar analysis. ESG performance is measured using Refinitiv Eikon data. Findings: Board independence, gender diversity and transparency positively affect ESG performance. State ownership moderates these effects: in SOEs, the impact of board size and gender diversity is reduced, while transparency becomes more influential, particularly for governance outcomes. CEO duality negatively affects ESG, though the effect is weaker in state-owned firms. These results indicate that board effectiveness is contingent on ownership and institutional context. Research limitations/implications: The binary coding of state ownership may mask variations in control and influence. Future studies should examine more nuanced ownership types and dynamic changes over time. Originality/value: The study uniquely integrates ownership identity into the corporate governance–ESG nexus, showing that the effectiveness of board mechanisms depends on state ownership in Asia-Pacific markets. It contributes to theory on governance-context contingencies and offers practical insights for policy and corporate stewardship.
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Ownership structure and state involvement can moderate the relationship between board characteristics and ESG performance, influencing how governance mechanisms shape responsible technology use in emerging and Asia-Pacific markets.
“Recent studies further demonstrate that ownership structure and state involvement can moderate the relationship between board characteristics and ESG performance, influencing how governance mechanisms shape responsible technology use in emerging and Asia-Pacific markets (Al-Tahat et al. 2025).”
From AI-driven financial fraud detection in Pakistan’s banking sector: bridging strategic intent and operational implementation (2026) · cites this paper as Al-Tahat et al. 2025
The Introduction states that state ownership can moderate the relationship between board characteristics and ESG performance in Asia-Pacific markets. The paper does not connect that finding to responsible technology use, so that extension of the citing sentence is unsupported. (LLM, conf=0.88)
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- Authors
- Al-Tahat, S., Bani-Khaled, S., Jaradat, Z., Mansour, M., & Al-zoubi, A. M.
- Affiliations
- Al al-Bayt University (JO)
- Jadara University (JO)
- Venue
- Journal of Business and Socio-economic Development
- Publisher
- Emerald
- Published
- 2025-10-21
- Pages
- 1-22
- ISSN
- 2635-1374 (ISSN-L)
- 2635-1692
- OpenAlex
- W4415376929
- Cited by
- 27
- References
- 69
- Citations by year
- 2026: 24 · 2025: 3
- FWCI
- 23.25
- Type
- journal article
- Language
- en
- Open access
- diamond
- doi.org
- Licence
- Locations
- Journal of Business and Socio-economic Development (publishedVersion, cc-by)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Governance and Financial Management
- Keywords
- state ownership, board characteristics, ESG performance, board independence, board gender diversity, board transparency, board size, CEO duality, state-owned enterprises, corporate governance, institutional contingencies, emerging markets, Asia-Pacific region
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