Gender Diversity and Firm Performance
Keywords:
gender diversity, board of directors, firm performance
Abstract
In recent years, there has been a lot of interest in the topic of gender diversity on board of directors. This is mostly caused by the fact that there are more women on firm boards of directors every year. Mixed results were found based on some literature from previous research. While some research suggests a beneficial association between gender diversity on boards of directors and firm performance, some even show that there is no clear relationship between the two. The purpose of this study is to investigate how gender diversity on boards of directors effects Indonesian firm performance. The samples came from issuers outside of the financial industry that were still included in the Kompas 100 index between 2013 and 2019. The results of this study's analysis using the robust linear regression method show a strong positive impact between the firm performance and the gender diversity of the board of directors.
References
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Biswas, S. (2021). Female directors and risk-taking behavior of Indian firms. Managerial Finance, 47(7), 1016–1037. https://doi.org/10.1108/MF-05-2020-0274
Chauhan, Y., & Kumar, D. (2017). Do female directors really add value in Indian firms ? Journal of Multinational Financial Management, 42–43, 24–36. https://doi.org/10.1016/j.mulfin.2017.10.005
Conyon, M. J., & He, L. (2017). Firm performance and boardroom gender diversity: A quantile regression approach. Journal of Business Research, 79, 198–211. https://doi.org/10.1016/j.jbusres.2017.02.006
Đặng, R., Houanti, L. H., Reddy, K., & Simioni, M. (2020). Does board gender diversity influence firm profitability? A control function approach. Economic Modelling, 90, 168–181. https://doi.org/10.1016/j.econmod.2020.05.009
Dwiharti, A. N., & Adhariani, D. (2018). CEO gender, financial performance and firm risk level: Evidence from Indonesia. International Journal of Economics and Management, 12(Specialissue1), 67–77.
Grant Thornton. (2018). More Businesses have women in senior leadership roles globally.
Gregory-Smith, I., Main, B. G. M., & O’Reilly, C. A. (2014). Appointments, pay and performance in UK boardrooms by gender. Economic Journal, 124(574). https://doi.org/10.1111/ecoj.12102
Lakhal, F., Aguir, A., Lakhal, N., & Malek, A. (2015). Do women on boards and in top management reduce earnings management? Evidence in France. Journal of Applied Business Research, 31(3), 1107–1118. https://doi.org/10.19030/jabr.v31i3.9236
Li, H., & Chen, P. (2018). Board gender diversity and firm performance: The moderating role of firm size. Business Ethics, 27(4), 294–308. https://doi.org/10.1111/beer.12188
Low, D. C. M., Roberts, H., & Whiting, R. H. (2015). Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore. Pacific Basin Finance Journal, 35, 381–401. https://doi.org/10.1016/j.pacfin.2015.02.008
Murhadi, W. (2015). Analisis Laporan Keuangan Proyeksi dan Valuasi Saham. Penerbit Salemba Empat.
Ruiz-Jiménez, J. M., & Fuentes-Fuentes, M. del M. (2016). Management capabilities, innovation, and gender diversity in the top management team: An empirical analysis in technology-based SMEs. BRQ Business Research Quarterly, 19(2), 107–121. https://doi.org/10.1016/j.brq.2015.08.003
Syamsudin, S., Setiany, E., & Sajidah, S. (2017). Gender diversity and firm value: A study on boards of public manufacturing firms in Indonesia. Problems and Perspectives in Management, 15(3), 276–284. https://doi.org/10.21511/ppm.15(3-1).2017.11
Tricker, B. (2009). Corporate Governance: Principles, Policies, and Practices. Oxford University Press.
Wan Ismail, W. K., & Al-Taee, F. J. H. (2012). Integrating gender, traits and transformational leadership style as viewed from human resource management strategy. International Journal of Academic Research, 4(3), 16–20. https://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=80224248&site=eds-live
Yang, P., Riepe, J., Moser, K., Pull, K., & Terjesen, S. (2019). Women directors, firm performance, and firm risk: A causal perspective. Leadership Quarterly, 30(5), 101297. https://doi.org/10.1016/j.leaqua.2019.05.004
Ye, D., Deng, J., Liu, Y., Szewczyk, S. H., & Chen, X. (2019). Does board gender diversity increase dividend payouts? Analysis of global evidence. Journal of Corporate Finance. https://doi.org/10.1016/j.jcorpfin.2019.04.002
Published
2023-04-06
How to Cite
Utami, A. (2023). Gender Diversity and Firm Performance. Proceeding of International E-Conference On Management & Small Medium Enterprise, 1(1), 74-86. Retrieved from http://prosiding.uika-bogor.ac.id/index.php/ICMSME/article/view/428
