Date of Award

4-14-2026

Thesis Type

Masters

Document Type

Dissertation

Divisions

Faculty of Business and Economics

Department

Department of Accounting

Institution

Universiti Malaya

Abstract

Environmental, Social, and Governance (ESG) performance has emerged as more prominent in the contemporary business environment, serving as a non-financial key performance indicator besides classical financial indicators. Among the factors influencing ESG performance, the top management team (TMT) demographic characteristics have become an important determinant. Drawing on Upper Echelons Theory (UET), this study explores how the demographic characteristics of the top management team, specifically diversity in gender, age, and functional background, as well as the degree of professionalism indicated by the level of educational background influence firm ESG performance. Furthermore, it examines the moderating effect of TMT remuneration on these relationships. With a comprehensive sample of Chinese listed firms spanning all industries from 2016 to 2022, this study employs panel data regression to analyze how the TMT demographic characteristics and remuneration impact ESG performance. This study is of vital importance within the special corporate governance system in China, a single-tier board system with unique features. The empirical results substantiate that the diversity and professionalism of the TMT improve ESG performance in a positive way. The age andgender diversity allow greater thought coverage as well as fairer decision-making, while thefunctional background diversity further reinforces the ability to tackle compound ESGchallenges. Advanced levels of TMT members' education are connected with higher-order strategic thinking as well as the integration of ESG. Moreover, TMT remuneration is alsoproven to be positively moderating between TMT demographic characteristics and ESGperformance and therefore proves that the executive incentives must be harmonized withthe sustainability objectives. These findings highlight the critical role of TMT demographic characteristics and remuneration in driving ESG performance, with significant implications for researchers and practitioners. By promoting diverse and highly educated TMT and designing remuneration schemes that foster sustainable value creation, firms can better manage the uncertainty of ESG concerns and achieve long-term success.

Initial

khm

Additional Information

Dissertation (M.A.) – Faculty of Business and Economics, Universiti Malaya, 2026.

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