The Effect of Gender Diversity on Company Financial Performance

Abstract

This study aims to examine the effect of gender diversity on the board of commissioners and board of directors on the financial performance of non-financial companies listed on the Indonesia Stock Exchange over the period of 2013-2017. The analytical method used was multiple linear regressions with the classical assumption test. As a result, the presence of women on the board of directors and board of commissioners measured by dummy and the proportion of women councils did not affect financial performance as measured by return on asset and return on equity. Meanwhile, control variables of company size and leverage are proven to influence financial performance significantly.

Do bank managers use securitization gains to smooth earnings in the post- FAS 166/167 period?

“…However, it must be noted the results are novel and thus contribute to body of knowledge. Several scholars failed to find any significant results (see (Ekadah & Mboya, 2011;Gallego-Álvarez et al, 2010;Marashdeh et al, 2021;Musa et al, 2020;Satria et al, 2020;Suherman et al, 2021;Siagbian, 2018;Zaid et al, 2020).…”

“…Musa et al (2020) examined the effect of board gender diversity in Nigerian banks and concluded that there is no significant effect on their financial performance. Also, Satria et al (2020) examined the link between board gender diversity and financial performance using non-financial corporations in Indonesia from 2013 to 2017 and found no significant effect. Furthermore, Gao (2020) examined 17,075 Chinese firms over a period of 2010 to 2016 and established that women directors have positive significant effect on financial performance.…”

“…However, in some others empirical investigations, women directors are not good for corporation bottom-line (Adnan et al, 2013;Aladejebi, 2021;Mirza et al, 2012). Still, others failed to find any significance at all (Ekadah & Mboya, 2011;Gallego-Álvarez et al, 2010;Marashdeh et al, 2021;Musa et al, 2020;Satria et al, 2020;Suherman et al, 2021;Siagbian, 2018;Zaid et al, 2020). These different studies create practical, empirical, methodological, sectoral, geographical gaps, etc., that require further interrogation.…”

Gender Diversity Perspective as Moderation: Does Profitability and Capital Structure Affect Financial Distress during Corona Virus Period?

“…Unlike the studies carried out by LISAIME, [1] which declares gender diversity has an adverse impact on profitability. Meanwhile, research from Maghfiroh & Utomo, [25] states that gender diversity does not affect profitability. Research conducted by Fitri & Erlita,[26] states that gender diversity has a positive effect on capital structure.…”