03 / thesis research
The knowledge is already in the room.
Foreign Exposure, ESG Performance, and the Moderating Role of Industry Sensitivity
Studying abroad made me curious about a belief I had heard many times: that foreign education automatically means better knowledge, better decisions, and better outcomes when someone returns home.
For my thesis, I tested whether publicly listed companies in emerging Southeast Asia performed better on ESG when more of their board members had studied abroad. I hand-collected board education data and analysed 282 firm-year observations across Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
The result was not what I expected. Foreign education alone did not show a clear positive effect on ESG performance.
What the study uncovered is that the pathway from board characteristics to ESG outcomes is not a direct one. It runs through institutions, governance structures, and political economies that can either enable or absorb a director's knowledge before it reaches firm-level decisions.
The clearest signal in the data came from board independence. This suggests that what matters most is not who directors are, but whether they are free to act on what they know.
The knowledge is often already in the room. The question is whether the room allows it to speak.