Sustainability and Stability: Examining the Impact of ESG Controversies and Executive Diversity on Financial Distress
基于2011-2022年英国样本，研究发现ESG争议加剧财务困境，而高管性别多样性则降低财务困境风险，且两者存在替代效应。
ABSTRACT This study investigates the relationship between environmental, social, and governance (ESG) controversies, executive gender diversity, and financial distress. Using a UK sample covering the period 2011–2022, the analysis reveals a positive association between ESG controversies and financial distress, indicating that negative ESG perceptions can exacerbate firms' financial challenges. In contrast, executive gender diversity is found to have a negative relationship with financial distress, suggesting its potential protective role in mitigating financial risks. Furthermore, the results reveal a substitution effect between gender diversity and ESG controversies in influencing financial distress. Overall, this research contributes to the academic literature on the financial implications of ESG practices and provides valuable insights for companies and policymakers by emphasizing the critical interplay among ESG performance, executive gender diversity, and financial stability.