The Impact of Board Gender Diversity, Independent Commissioners, and Meeting Frequency on Financial Performance: Evidence From Indonesian Listed Bank (2019-2023)
Abstract
This study examines the impact of female representation on the board of directors, board independence, and board meeting frequency on corporate financial performance, as measured by Return on Assets (ROA). The data used in this research comes from secondary sources, namely the annual reports of IDX-listed businesses from 2019 to 2023, and a regression analysis approach applied using the Eviews 12 software. Using a purposive selection approach, 25 samples were chosen from a pool of 43 firms. Secondary sources, namely the annual reports of IDX-listed companies from 2019 to 2023, and a regression analysis method implemented in Eviews 12 software, comprise the data used in this study. From a pool of forty-three companies, 25 were selected using a purposeful selection method. The results add to our knowledge of the factors that influence the effectiveness of boards in terms of membership and structure. Firms may benefit financially and socially from more equitable and long-term economic development if this study's findings motivate them to diversify their boards of directors, particularly by increasing the number of women and independent directors.
Downloads
References
Al-Matari, E. M., Al-Swidi, A. K., Fadzil, F. H., & Al-Matari, Y. A. (2012). The Impact of board characteristics on Firm Performance: Evidence from Nonfinancial Listed Companies in Kuwaiti Stock Exchange. International Journal of Accounting and Financial Reporting, 2(2), 310. https://doi.org/10.5296/ijafr.v2i2.2384
Al‐Shaer, H., Kuzey, C., Uyar, A., & Karaman, A. S. (2024). Corporate strategy, board composition, and firm value. International Journal of Finance & Economics, 29(3), 3177–3202. https://doi.org/10.1002/ijfe.2827
Ansori, Manual, U., Brämswig, K., Ploner, F., Martel, A., Bauernhofer, T., Hilbe, W., Kühr, T., Leitgeb, C., Mlineritsch, B., Petzer, A., Seebacher, V., Stöger, H., Girschikofsky, M., Hochreiner, G., Ressler, S., Romeder, F., Wöll, E., Brodowicz, T., … Baker, D. (2022). Ruang lingkup, karakteristik dan strategi kewirausahaan. Science, 7(1), 1–8.
Assenga, M. P., Aly, D., & Hussainey, K. (2018). The impact of board characteristics on the financial performance of Tanzanian firms. Corporate Governance: The International Journal of Business in Society, 18(6), 1089–1106. https://doi.org/10.1108/CG-09-2016-0174
Awad, A. B., Khalaf, B. A., & Afzal, A. (2023). The power of board size and gender diversity on the value of companies listed on emerging markets. Corporate Law and Governance Review, 5(2), 128–139. https://doi.org/10.22495/clgrv5i2p14
Black, B., & Kim, W. (2012). The effect of board structure on firm value: A multiple identification strategies approach using Korean data. Journal of Financial Economics, 104(1), 203–226. https://doi.org/10.1016/j.jfineco.2011.08.001
Chatterjee, C., & Nag, T. (2023). Do women on boards enhance firm performance? Evidence from top Indian companies. International Journal of Disclosure and Governance, 20(2), 155–167. https://doi.org/10.1057/s41310-022-00153-5
Dang, H. N., Vu, V. T. T., Ngo, X. T., & Hoang, H. T. V. (2019). Study the Impact of Growth, Firm Size, Capital Structure, and Profitability on Enterprise Value: Evidence of Enterprises in Vietnam. Journal of Corporate Accounting & Finance, 30(1), 144–160. https://doi.org/10.1002/jcaf.22371
Darmadi, S. (2011). Board Diversity and Firm Performance: The Indonesian Evidence. Corporate Ownership and Control Journal, 8. https://ssrn.com/abstract=1727195
Diaz, P. wada sari, & Armadani, A. (2024). Direktur Perempuan dan Kinerja Perusahaan di Indonesia: Peran Moderasi Kepemilikan Asing. Jurnal Akuntansi Manado (JAIM), 143–157. https://doi.org/10.53682/jaim.vi.8523
Ghabayen, M. A. (2012). Board Characteristics and Firm Performance: Case of Saudi Arabia. International Journal of Accounting and Financial Reporting, 2(2), 168. https://doi.org/10.5296/ijafr.v2i2.2145
Hoobler, J. M., Masterson, C. R., Nkomo, S. M., & Michel, E. J. (2018). The Business Case for Women Leaders: Meta-Analysis, Research Critique, and Path Forward. Journal of Management, 44(6), 2473–2499. https://doi.org/10.1177/0149206316628643
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Johl, S. K., Kaur, S., & Cooper, B. J. (2015). Board Characteristics and Firm Performance: Evidence from Malaysian Public Listed Firms. Journal of Economics, Business and Management, 3(2), 239–243. https://doi.org/10.7763/JOEBM.2015.V3.187
Kwak, S. G., & Kim, J. H. (2017). Cornerstone of Modern Statistics. Korean Journal of Anesthesiology, 70(2), 144–156. 423;
Lee, J. S., Lan, L. L., & Rowley, C. (2014). Why might females say no to corporate board positions? The Asia Pacific in comparison. Asia Pacific Business Review, 20(4), 513–522. https://doi.org/10.1080/13602381.2014.907689
Martin Lipton, B., Lorsch, J. W., & Messrs, U. (1992). Lipton, Martin and Jay W. Lorsch “A Modest Proposal for Improved Corporate Governance” Business Lawyer, Vol. 48, November 1992. Harv. L. Rev, 1161(1981), 1169.
Mishra, R. K., & Kapil, S. (2018). Effect of board characteristics on firm value: evidence from India. South Asian Journal of Business Studies, 7(1), 41–72. https://doi.org/10.1108/SAJBS-08-2016-0073
Mishra, R., & Kapil, S. (2017). Effect of ownership structure and board structure on firm value: evidence from India. Corporate Governance: The International Journal of Business in Society, 17(4), 700–726. https://doi.org/10.1108/CG-03-2016-0059
Pucheta-Martínez, M. C., & Gallego-Álvarez, I. (2020). Do board characteristics drive firm performance? An international perspective. Review of Managerial Science, 14(6), 1251–1297. https://doi.org/10.1007/s11846-019-00330-x
Rahmat, R. (2024). the Influence of Gender Diversity on Board and Company Debt Policy on Corporate Performance. Berkala Akuntansi Dan Keuangan Indonesia, 9(1), 134–155. https://doi.org/10.20473/baki.v9i1.53597
Rodriguez-Fernandez, M., Fernandez-Alonso, S., & Rodriguez-Rodriguez, J. (2014). Board characteristics and firm performance in Spain. Corporate Governance, 14(4), 485–503. https://doi.org/10.1108/CG-01-2013-0013
Setyanto, W. A., & Asyik, N. F. (2018). Pengaruh Good Corporate Governance dan Kebijakan Dividen Terhadap Nilai Perusahaan. Jurnal Ilmu Dan Riset Akuntansi, 7(8), 1–21. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/1075
Sobhan, R. (2021). Board Characteristics and Firm Performance: Evidence from the Listed Non-Banking Financial Institutions of Bangladesh. International Journal of Management, Accounting & Economics, 8(1), 25–41. https://dcu.idm.oclc.org/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=149483937&site=ehost-live&scope=site
Copyright (c) 2025 Nabila Nurjannah, G. A. Sri Oktaryani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
