The Effect of Board Size and Gender Diversity on Company Performance Moderated by Political Connections and Family Ownership
Keywords:
firm performance, family ownership, political connections, board size, Gender diversityAbstract
The purpose of this study was to examine the relationship between board size and board gender diversity on financial performance using political connections and family ownership as moderating variables. The research population consists of all sectors except the financial sector which is listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period. Purposive sampling is used in the sampling approach, using research data obtained from the company's annual report. The data analysis used in this research is panel data regression with Eviews software.
The research findings show that board gender diversity has a significant effect on company performance, while company size does not affect company performance. The findings also show that political connections cannot moderate the relationship between board size and board gender diversity on firm performance, whereas family ownership can moderate the relationship between board size and board gender diversity on financial performance.
Downloads
References
Awais, HM, & Siddiqui, DDA (2020). Boards' Gender Diversity and Firms' Financial and Ethical Performance in Pakistan: A Comparative Analysis. Business and Economic Research, 10(3), 255. https://doi.org/10.5296/ber.v10i3.17309
Basuki, AT, & Prawoto, N. (2016). Regression Analysis in Economics and Business Research: Equipped with SPSS and Eviews Applications. Rajawali Press, Jakarta.
BAZHAIR, A.H. (2021). Corporate Governance Mechanism and Firm Performance in Saudi Arabia.
Estudios de Economia Aplicada, 39(4). https://doi.org/10.25115/eea.v39i4.4317
Chandra, B., & Cintya, C. (2021). Efforts to practice Good Corporate Governance in tax avoidance in Indonesia. Journal of Modernization Economics, 17(3), 232–247. https://doi.org/10.21067/jem.v17i3.6016
Chandra, B., & Junita, N. (2021). Corporate governance and earnings management on dividend policy in Indonesia. Journal of Modernization Economics, 17(1), 15–26. https://doi.org/10.21067/jem.v17i1.5188
Cristiano, A., & Yopie, S. (2021). The Importance of Gender and Family Manager Education Background To CEO Founder's Moderated Company Values. Journal of Development Economics, 19(02), 107-121.
Karina, R. (2021). Corporate governance and earnings management: Does gender matter? Indonesian Journal of Accounting and Auditing, 125-135.
Tang, S., & Fiorentina, F. (2021). The Influence of Company Characteristics, Company Performance, and Management Entrenchment on Profit Management. Journal of Business Economics and Entrepreneurship, 10(2), 121.
Wagana, D.M., & Nzulwa, J.D. (2016). Corporate Governance, Board Gender Diversity And Corporate Performance: A Critical Review Of Literature. European Scientific Journal, ESJ, 12(7), 221. https://doi.org/10.19044/esj.2016.v12n7p221
Wang, Y., Yao, C., & Kang, D. (2019). Political connections and firm performance: Evidence from government officials' site visits. Pacific Basin Finance Journal, 57(February). https://doi.org/10.1016/j.pacfin.2018.05.003
Xiaomei, Z., Sallehuddin, M.R., Saad, R.M., & Lu, Z. (2021). Gender diversity, political connections and environmental, social and governance performance in China: The moderating role of tenure. Estudios de Economia Aplicada, 39(10). https://doi.org/10.25115/eea.v39i10.5962
Zhang, L. (2019). An Institutional Approach to Gender Diversity and Firm Performance. SSRN Electronic Journal, February. https://doi.org/10.2139/ssrn.3461294
Zheng (Jerry), C., & Tsai, H. (2019). Diversification and performance in the hotel industry: do board size and family representation matter? International Journal of Contemporary Hospitality Management, 31(8), 3306–3324. https://doi.org/10.1108/IJCHM-06-2018-0465
LOGIN
