Capital Structure and Performance due to Gender Diversity of CEOs in Indonesian Small Medium-sized Business (original) (raw)

CEO gender, corporate finance decisions, and performance

Taylor & Francis Group, 2018

This study aims to determine the effect of CEO gender on corporate financial decisions namely, investment decisions, financing decisions (leverage) and corporate performance. This study is made up from 478 firms year data of 151 manufacturing companies listed on the Indonesia Stock Exchange for the period 2010-2014. By employing linear regression, the results indicate that companies led by female CEOs tend to have lower investment and leverage level compared to those led by male CEOs. On the other hand, female CEOs contribute better to the company's performance compared to male CEOs.

CEO Gender and Firm Debt Policy: An Empirical Study in Indonesia

Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018), 2020

This research was aimed to investigate the influence of female director and female commissioner in the firm structure capital of nonfinancial companies listed on Indonesia Stock Exchange (IDX) from 2010-2014 with 372 observations. A structure capital of the firms was measured by the leverage ratio that implicated to debt policy. The leverage ratio showed the level of usage in the company as variable dependent. Dividend payout ratio, return on asset, size of director, and size of commissioner served as control variables. Modeling the leverage's firm using multiple regression, the result of this study indicated that firms with a larger fraction of female director had negative effect on debt policy significantly. Otherwise, female commissioner's did not significantly affected debt policy. The control variables that significantly affected debt policy were dividend payout ratio and size of director.

Efek Moderasi Gender atas Pengaruh Struktur Modal terhadap Nilai Perusahaan pada Industri Barang Konsumsi di Bursa Efek Indonesia

Literatus, 2022

The objective of this research is to analyze the effect of gender moderation in influencing capital structure on firm value of consumer goods industry listed on Indonesia Stock Exchange. The sample was determined based on purposive sampling technique and 27 companies were obtained as research sample. Capital structure was measured using debt to total asset ratio as an independent variable, gender diversity as a moderating variable, and firm value was measured using price earnings ratio as dependent variable. The multiple regression analysis showed that capital structure had a significant positive effect on firm value and gender diversity could strengthened the relationship of capital structure to firm value. This result indicated that female directors in top management could contribute to capital structure decisions that increase firm value

Do Women in Top Management Affect Firm Performance? Evidence from Indonesia

This paper investigates the relationship between gender diversity on management boards and financial performance of Indonesian listed companies. We conduct cross-sectional regression analysis based on a sample comprising 92.4 percent of public firms listed on the Indonesia Stock Exchange (IDX). We find that the representation of female top executives is negatively related to both accounting and market performance, suggesting that female representation is not associated with improved level of performance. From correlation analysis, our results also reveal that smaller firms, which tend to be family-controlled, are more likely to have higher proportion of female members on management boards. This implies that large firms are “tougher” for women in terms of opportunities to hold seats on the board.

Female Directors and Firm Performance: Evidence of Family Firm in Indonesia

Asian Journal of Economics, Business and Accounting

The purpose of this study is to determine the effect of female board of directors on company performance. Using a sample of 144 family firms in Indonesia in the period 2018 to 2020. This study examines the relationship between female directors and corporate accounting (ROA and ROE) and market-based performance (Tobin's Q). This study uses a panel data approach with OLS measurements and fixed effects model measurements. This study found that female ownership significantly lowers Tobin's Q. While female CEOs have a negative effect on ROA. Furthermore, the ownership and presence of women on the board has no effect on ROA. In measuring company performance as proxied by ROE, it was found that women's ownership, the presence of women on the board, and women's leadership had no effect. Studies on the relationship between gender diversity and financial performance in the context have been carried out in developed economies. This study contributes to the literature related to...

Gender-Diversity, Financial Performance and Cash Holding in Family Firms

Accounting and Finance Review , 2018

Objective-This research aims to determine the presence of partial effects on gender-diversity and financial performance variables on the cash holding of family firms on the Indonesian Stock Exchange included in the Kompas100 index. Methodology/Technique-The approach used in this research was causal associative testing using a panel data regression with a General Least Square (GLS) method using six independent variables: size, growth opportunity, dividend, return on assets, leverage, and gender diversity. Meanwhile, cash holding acts as a dependent variable. Findings-The results of the research show that the independent variables of leverage have significantly negative relationships on cash holding on the Kompas100 index of Indonesia in the period of 2013-2016. Contrary to this, return on asset has a significantly positive relationship with cash holding. Novelty-Gender diversity is an important variable of boardroom; this paper reveals the impact of gender diversity and performance on family holding firms. These results can be used to assess the performance and fundamentals of a firm. Type of Paper: Empirical.

The Impact of Financial Capital on Business Performance: A Comparison of Women- and Men-Owned Firms

SSRN Electronic Journal, 2009

This article uses data from the Kauffman Firm Survey to explore, by gender, the relationship of start up capital for new firm performance in terms of assets, revenues, income, employment, and survival. Our results reveal that, consistent with prior research, women-owned firms start with smaller amounts of capital than men-owned firms. Our findings also indicate that women launched their firms with larger amounts of owner-provided equity and dramatically smaller amounts of outsider equity. Finally, our results reveal that, even controlling for firm size and the amount of capital at startup, women-owned firms still underperformed firms owned by men in measures of size, profitability, employment, and survival over time. This finding suggests that differences in financial capital are just one factor associated with the gender differences in the performance outcomes of new firms.

Diversity of the Executive Board, Investment Decisions, and Firm Value: Is Gender Important in Indonesia?

Jurnal Reviu Akuntansi dan Keuangan, 2019

The purposes of this research are to determine the effect of executive board gender diversity on firm value. Gender diversity shows that companies do not discriminate while evaluating employee performance. This diversity affects the fair competition conducted by employees to show the best performance so they can occupy the highest positions in the company. Gender diversity has the impact of a difference in the level of optimism, confidence, and risk preferences. The feminine nature of women influences the quality of investment decision making, which has an impact on increasing company value. The signalling theory is used to describe the stakeholders perceived on investment decision making by female CEOs. Research using PLS in LQ45 registered companies in Indonesian Stock Exchange for the years 2014-2017. The results showed that investment decisions affect the value of the firm. Besides, the composition of the female CEO can moderate the relationship between investment decisions and ...

The Effect of Gender Diversity and Financial Ratios on Financial Distress in Manufacturing Companies Indonesia

2021

This study aims to determine the effect of gender diversity and financial ratios on financial distress. The data used in this study are secondary data. The population used is manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period with a purposive sampling technique. The number of data on manufacturing companies is as many as 141 companies, but there are only 94 companies that fall into the research criteria. The analytical method used is Logistic Regression Analysis. Based on the research results, gender diversity, net profit margin, current ratio, and debt ratio have no effect on financial distress, return on assets has a negative effect on financial distress, and working capital to total assets has a positive effect on financial distress

Female Commissioner and Independent Commissioner to Capital Structure Decision: Evidence from Indonesia’s Manufacturing Industries

2022

This study was formed in order to identify how the composition of the board of commissioners can influence the capital structure decisions of a company. After processing the data, our research results show that the number of female commissioners variable has a negative and significant correlation to the DAR ratio variable, as indicated by the coefficient value of -0.078 and a significance value of 0.0041. While the percentage of the number of independent commissioners variable has a coefficient value of 0.622 and a significance value of 0.0014 which means that the relationship to the DEBTASSET variable is positive and significant.