Arwa H. Amoush

Type of the article: Research Article

Abstract
This study examines the relationship between family ownership and investment efficiency in the Middle East and North Africa (MENA) region by investigating the mediating role of environmental, social, and governance (ESG) performance and the moderating role of board gender diversity. Using a sample of non-financial firms from eight MENA countries (Saudi Arabia, Egypt, Jordan, Kuwait, United Arab Emirates, Qatar, Oman, and Bahrain) over the period 2015–2023, comprising 3,245 firm-year observations, and ESG data obtained from Refinitiv, the analysis employs firm fixed-effects and system GMM estimations. The results indicate that family ownership is positively associated with investment efficiency (β = 0.044, p < 0.01). Family ownership also has a positive effect on ESG performance (β = 0.118, p < 0.01), while ESG performance is positively associated with investment efficiency (β = 0.039, p < 0.01). Further analysis reveals that ESG performance partially mediates the relationship between family ownership and investment efficiency. Moreover, board gender diversity strengthens the positive effect of ESG performance on investment efficiency (β = 0.001, p < 0.01), indicating that firms with greater female board representation are better able to translate sustainability engagement into efficient capital allocation. The findings highlight the complementary roles of family ownership, ESG performance, and board gender diversity in enhancing investment efficiency in emerging markets. These results provide important implications for policymakers, investors, and corporate leaders seeking to promote sustainable governance and efficient investment decisions in the MENA region.