Breaking Down Barriers: How Board Composition Drives Sustainability in GCC Countries

Abed, Alaa, Al-Najjar, Basil ORCID: https://orcid.org/0000-0003-2753-7142 and Salama, Aly (2025) Breaking Down Barriers: How Board Composition Drives Sustainability in GCC Countries. International Journal of Human Resource Management. ISSN 0958-5192 (In Press)

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Abstract

This study empirically examines the impact of board composition on firm sustainability within Gulf Cooperation Council (GCC) countries from 2017 to 2021. Using a sample of 135 non-financial, publicly listed GCC firms (364 firm-year observations), this paper investigates the effects of gender diversity, board size, independence, skills, and the presence of sustainability committees on sustainability outcomes. Employing advanced econometric techniques—including panel regression, weighted regression models, quantile regression, Tobit, and logit analyses—to ensure robustness and address potential endogeneity, we find a significant positive effect of board gender diversity on sustainability. In contrast, other board characteristics do not consistently influence sustainability performance. These findings emphasise the unique role of female directors in promoting sustainable governance in the GCC, suggesting that increasing gender diversity may be a more effective strategy for corporate sustainability than focusing on other board factors. This paper extends agency and resource dependence theories in the GCC context, offering practical insights for policymakers and managers in emerging markets. It highlights the importance of diverse boards in promoting sustainability and calls on policymakers to implement regulations encouraging board diversity for long-term corporate sustainability in the region—a call to action for a sustainable future.