Corporate Governance and ESG Performance in GCC Countries: A Pre-, During-, and Post-COVID-19 Analysis

This study examines how corporate governance mechanisms—namely board size and board independence—affect Environmental, Social, and Governance (ESG) performance among non-financial firms in Gulf Cooperation Council (GCC) countries. Using 824 observations from 2010 to 2023, spanning periods pre, during, and post the COVID-19 pandemic, this study utilizes panel data methods to analyze trends in ESG outcomes. The findings suggest that larger companies with greater board independence tend to have stronger ESG performance, whereas board size and return on assets (ROA) generally do not exhibit statistically meaningful effects. These findings emphasize the importance of independent oversight and firm scale in driving sustainability practices, notably in the context of worldwide crises exemplified by the COVID-19 outbreak. This study provides valuable empirical insights into ESG practices for investors, corporate leaders, and policymakers in emerging markets. It emphasizes the role of governance structures in promoting ESG performance, which is important for stakeholder trust and sustainable development. By offering empirical insights during a critical transition period, this research enhances academic understanding and provides actionable recommendations for fostering ESG integration in the GCC region.