DOES WOMEN PARTICIPATION ON BOARDS IS ENOUGH TO IMPROVE THE FIRM PERFORMANCE?

Muhammad Harddisk Bintang Zulfikar, Vita Elisa Fitriana

Abstract


This research aims to examine the impact of women participation in the
boards of director (BOD) on the performance of the firms. Whether the presence of
women in BOD could make the performance of the firms become better or worse.
Furthermore, the present study also wants to fills the gaps in the extant literature by
examining the moderating effect of working experience in the relationship between
women participation in BOD and firm performance. This research is a secondary data
analysis which is using 280 service companies listed on Indonesia Stock Exchange
(IDX) for the year 2014-2017 as its sample. This research use multiple linear
regression. The result shows that working experience of the women boards is positively
influence the relationship of women participation on boards with the firm performance.
This result is expected can make the stakeholder of organization aware of the benefit
having more gender diverse boards.


Keywords


Women BOD, Firm Performance, Working Experience.

References


Bardasi, E., Sabarwal, S., & Terrell, K. (2011). How Do Female Entrepreneurs Perform? Evidence from Three Developing Regions. Small Business Economics, 37(4), 417–441.

Chapple, L., & Humphrey, J. E. (2014). Does Board Gender Diversity Have a Financial Impact? Evidence Using Stock Portfolio Performance. Journal of Business Ethics, 122(4), 709–723.

Chen, S., Ni, X., & Tong, J. Y. (2016). Gender Diversity in the Boardroom and Risk Management: A Case of R&D Investment. Journal of Business Ethics, 136(3), 599–621.

Custódio, C., Ferreira, M. A., & Matos, P. (2013). Generalists Versus Specialists: Lifetime Work Experience and Chief Executive Officer Pay. Journal of Financial Economics, 108(2), 471–492.

Dezső, C. L., & Gaddis Ross, D. (2012). Does Female Representation in Top Management Improve Firm Performance? A Panel Data Investigation. Strategic Management Journal, 33(9), 1072–1089.

Ellwood, S., & Garcia-Lacalle, J. (2015). The Influence of Presence and Position of Women on the Boards of Directors: The Case of NHS Foundation Trusts. Journal of Business Ethics, 130(1), 69–84.

Gavious, I., Segev, E., & Yosef, R. (2012). Female Directors and Earnings Management in High-Technology Firms. Pacific Accounting Review, 24(1), 4–32.

Hambrick, D. C. (2007). Editor’s Forum: Upper Echelons Thoery: An update. Academy of Management Review, 32(2), 334–343.

Harjoto, M., Laksmana, I., & Lee, R. (2015). Board Diversity and Corporate Social Responsibility. Journal of Business Ethics, 132(4), 641–660.

Hillman, A. J., Cannella, JR, A. A., & Paetzold, R. L. (2000). The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change. Journal of Management Studies, 7(3), 235–255.

Isidro, H., & Sobral, M. (2015). The Effects of Women on Corporate Boards on Firm Value, Financial Performance, and Ethical and Social Compliance. Journal of Business Ethics, 132(1), 1–19.

Martín-Ugedo, J. F., & Minguez-Vera, A. (2014). Firm Performance and Women on the Board: Evidence from Spanish Small and

Medium-Sized Enterprises. Feminist Economics, 20(3), 136–162.

Owen, J. (2014). Principal Component Analysis : Data Reduction and Simplification. McNair Scholars Research Journal, 1(2), 1–23.

Plöckinger, M., Aschauer, E., Hiebl, M. R. W., & Rohatschek, R. (2016). The Influence of Individual Executives on Corporate Financial Reporting: A Review and Outlook from the Perspective of Upper Echelons Theory. Journal of Accounting Literature, 37(2), 55–75.

Reguera-Alvarado, N., de Fuentes, P., & Laffarga, J. (2017). Does Board Gender Diversity Influence Financial Performance? Evidence from Spain. Journal of Business Ethics, 141(2), 337–350.

Smith, N., Smith, V., & Verner, M. (2006). Do Women in Top Management Affect Firm Performance? A Panel Study of 2,500 Danish Firms. International Journal of Productivity and Performance Management, 55(7), 569–593.

Terjesen, S., Sealy, R., & Singh, V. (2009). Women Directors on Corporate Boards: A Review and Research Agenda. Corporate Governance: An International Review, 17(3), 320–337.

Torchia, M., Calabrò, A., & Huse, M. (2011). Women Directors on Corporate Boards: From Tokenism to Critical Mass. Journal of Business Ethics, 102(2), 299–317.

Wu, P., Yao, X., & Muhammad, S. (2017). The Effect of Female Participation in Top Management Teams on the Growth Performance of Small and Medium-Sized Enterprises (SMEs). Asia Pacific Journal of Innovation and Entrepreneurship, 11(1), 108–119.




DOI: https://doi.org/10.32528/jiai.v5i1.3351

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 JIAI (Jurnal Ilmiah Akuntansi Indonesia)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

View My Stats