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This study examines the relationship between board gender diversity (BGD) and financial performance (FP) in the Malaysian emerging market, focusing on the mediating role of Environmental, Social and Governance (ESG) performance.

Using a dataset of 976 observations from Malaysian publicly listed companies from 2016 to 2023, this study explores BGD as the independent variable with FP measured through both accounting and market metrics. ESG performance serves as a mediating variable. The analysis employs Structural Equation Modelling (SEM) to examine direct and mediating effects, supplemented by the Baron and Kenny approach and Two-Stage Least Squares (2SLS) regression for robustness.

The findings indicate that higher BGD positively and significantly impacts all three performance measures: Tobin's Q (TQ), Return on Assets (ROA) and Return on Equity (ROE). ESG performance positively influences these measures. The SEM analysis reveals a significant positive impact of BGD on ESG performance, which fully mediates the relationship between BGD and TQ/ROA and partially mediates the relationship between BGD and ROE.

The results have significant implications for policymakers, board members, scholars and investors, stressing the importance of gender diversity and ESG performance in improving FP. The findings suggest that enhancing board effectiveness through BGD can promote sustainable practices and align corporate strategies with broader sustainability goals, which eventually helps to improve companies’ FP.

This research contributes to the literature by highlighting the mediating role of ESG performance in the relationship between BGD and FP and emphasizing the importance of gender diversity in corporate sustainability. It addresses this gap by providing insights into how ESG performance enhances the impact of BGD on FP.

Drawing from stakeholder (ST) and social exchange theory (SET), the purpose of this study is to examine the relationship between customer perceived ethicality (CPE), electronic word of mouth (eWOM), customer trust (CT) and customer loyalty (CL). Furthermore, this study aimed to understand the dual role of CPE and eWOM in obtaining CT and achieving CL.

Using a quantitative, cross-sectional research design, data were collected from face-to-face surveys, yielding 358 responses. The partial least square algorithm was used to test the proposed hypothesis.

The analysis revealed that CPE and eWOM positively affect CT and CL, and CT has a mediating effect on the association between CPE–CL and eWOM–CL. CT was also found to positively affect CL.

Hotel managers can prioritize ethical practices and leverage the power of eWOM to build trust and achieve loyalty. This integrated approach not only enhances customer satisfaction and retention but also creates a competitive advantage.

The novelty of this study lies in the investigation of the dual role played by CPE and eWOM as antecedents of CT and CL within the hotel industry. Finally, this study explains the drivers of CT and CL, thereby making a novel contribution to the literature.