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Board Characteristics, Female Commissioner and Performance of Listed Manufacturing Firms in Indonesia
Abstract
This study aims to analyze the influence of the characteristics of the board of directors and the role of female commissioners on company performance. The characteristics referred to are the total number of directors, directors of foreign nationality, directors of doctoral degrees, female CEOs, gender diversity, and composition of non-executive directors. This research was conducted on manufacturing companies that went public on the Indonesia Stock Exchange. The number of samples in the natural study were 98 companies for the 2019-2021 research period with a total of 294 data samples and analysis. The data analysis technique used the multiple linear regression method. The results of the study show that the instruction of the number of foreign nationals and CEOs has a significant positive effect on company performance. Other characteristics, namely directory number, doctoral directory number and female commissioners have a significant negative effect on company performance. Meanwhile, gender diversity on the advisory board has no significant effect on company performance. The composition of non-executive directors found different results for the two company performance measures, which had no effect on Return on Assets, but had a significant positive effect on Return on Equity. The results of this study indicate that the characteristics of the board are very important information for investors to be considered in assessing whether a company has good prospects in the future through the Return on Assets and Return on Equity models.
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DOI: https://doi.org/10.26905/afr.v6i3.10570
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