Reporting ESG Initiatives and Gender Diversity in Germany: Implications for Stock Liquidity

ABSTRACT Adopting multiple theoretical perspectives, this study separately and jointly examines the impacts of reporting Environmental, Social, and Governance (ESG) initiatives and gender diversity in boardrooms on corporate stock liquidity. Using a sample of non‐financial firms listed on the Frankfurt CDAX from 2010 to 2023, the study investigates whether ESG reporting enhances stock liquidity and how gender diversity moderates this relationship. To assess ESG reporting, we utilise Refinitiv Workspace ESG scores, while gender diversity and stock liquidity are measured through various indices. The results demonstrate that firms with higher ESG reporting experience higher stock liquidity, with governance…