Risk committee attributes and environmental, social, and governance performance in Malaysian listed firms

This study examines the association between Risk Management Committee (RMC) attributes and environmental, social, and governance (ESG) performance in an emerging market context. Although governance reforms increasingly emphasise RMCs, evidence regarding their effectiveness remains limited and mixed, particularly in developing economies. Using 407 firm-year observations from Malaysian non-financial listed firms between 2018 and 2024, the study employs Feasible Generalized Least Squares (FGLS), with robustness analyses including pooled OLS, ESG pillar regressions, heterogeneity analyses, and pre-, during-, and post-COVID-19 comparisons. The results show that RMC meeting frequency exhibits the strongest and most consistent positive association with ESG performance, suggesting that active oversight is more strongly associated with ESG performance than formal committee structure alone. RMC overlap demonstrates a positive but context-dependent association, whereas RMC qualifications and gender diversity exhibit negative associations, indicating that formal credentials and demographic diversity alone may be insufficient without ESG-relevant expertise and effective integration into governance processes. The findings further show that the associations between RMC attributes and ESG performance vary across firm characteristics and crisis periods, highlighting the context-dependent nature of ESG governance. Overall, the study underscores the importance of active and coordinated risk oversight in strengthening ESG governance in emerging markets.