Women Directors and Firm Profitability: The Role of Corporate Environmental Responsibility Engagement

Abstract

Women in the professional world are still experiencing inequality, discrimination, and obstacles in achieving top management positions. The role of women in improving the com­pany's financial performance is still being debated to this day. This study aims to investigate the role of women directors in 129 manufacturing companies in Indonesia from 2015 to 2019. The data obtained were analyzed using structural equation modelling – partial least square (SEM-PLS). This study found that corporate environmental responsibility engagement did not mediate the relationship between women directors and firm profitability. This study found a significant negative relationship between women directors and corporate environmental responsibility but a significant positive influence between corporate environ­men­­tal responsibi­lity engagement and firm profitability. However, this study found no signifi­cant relationship between women directors and profitability.

The Mediating Effect of CSR Disclosure on Gender Diversity, Profitability, and Tax Avoidance

“…The increasing interest towards a company will increase profit, which are proxied by ROA (Wicaksono et al, 2023). This result is consistent with research conducted by Fairuzi and Tjahjadi (2022), which shows that companies with good financial performance (ROA) also perform better CSR activities. Thus, it can be concluded that H2 is accepted.…”