How the Board of Directors Affects ESG Performance?

This study examines the relationship between board of directors' characteristics and environmental, social, and governance (ESG) performance among publicly listed firms in Nigeria. Using panel data from 152 firms spanning 2015-2024, we employ fixed effects regression analysis to investigate how board composition, size, independence, diversity, and expertise influence ESG outcomes. The results reveal that board independence, gender diversity, and ESG expertise significantly enhance corporate ESG performance, while board size exhibits a non-linear relationship. These findings contribute to the growing literature on corporate governance in emerging markets and provide actionable insights for policymakers, regulators, and corporate leaders seeking to enhance sustainable business practices. The study underscores the critical role of board configuration in driving ESG performance within the unique institutional context of Nigeria's evolving regulatory landscape.