CEO Gender and Firm Debt Policy: An Empirical Study in Indonesia (original) (raw)
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International Journal of ENgineering & Technology, 2018
Previous researches and results show that women-owned small firms have less debt than man-owned firms, and they have different performance. The objective of this study is to know whether the difference of capital structure is a factor correlated with gender differences resulting in different financial performance. This study utilizes sample data of all small and medium-sized businesses listed in Indonesia Stock Exchange to determine the differences of capital structure and performance between companies with male and female CEOs. The statistical test result using independent t-test shows that there is no difference in both of them. Regression result shows variables influencing capital structure of small and medium-sized businesses in Indonesia are age of company, company size and company liquidity. Meanwhile, for company performance, the statistical test result shows that it is only variables of age of company and leverage that have significant effect. Therefore, small and medium-sized businesses should maintain their capital structure at low rates to have a good financial performance. Companies that are able to survive in a long term will also increase the company performance.
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CEO gender, corporate finance decisions, and performance
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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.
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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
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...
International Journal of Application on Economics and Business
the goal of this study was to gather empirical evidence of the effect of Profitability, Dividend Policy, and Collateral Assets on Debt Policy with Managerial Ownership as a moderating variable. This research relies on secondary data from the Indonesia Stock Exchange (IDX). The population used in this study are companies with large capitalization values that are included in the LQ45 index in the 2016-2020 period. Sampling in this study used purposive sampling method, and the data that met the criteria were 70 data which were processed using Statistical Package for the Social Sciences (SPSS) vers 25.0. Partially, Profitability and Collateral Assets have a significant impact on Debt Policy, while Dividend Policy has no significant effect on Debt Policy. Managerial Ownership unable to moderate the effect of Profitability, Dividend Policy and Collateral Assets on Debt Policy. The implication of this research is that companies with large capitalization of managerial ownership should play ...
Review of Management and Entrepreneurship
Gender has been a concern in the last ten years because gender differences have an impact on communication within the company so that it can affect the value of the company. The majority of companies listed on the IDX are family companies which will have an impact on the composition in the election of the company board. The results of previous studies on the influence of gender are also still inconsistent. This study aims to know the effect of gender on the board of commissioners on firm’s value and the influence of family control in weakening the influence of gender on the board of commissioners on firm’s value. Firm value was measured by using Tobin's Q, PBV and PER. The control variables used were firm size, commissioner size and leverage. The sample used in this research were all companies listed on the IDX except the financial and banking sectors and analyzed using multiple linear regression. The results proved that gender in the board of commissioners has no significant ef...
Board Gender Composition, Dividend Policy and Cost of Debt: The Implications of CEO Duality
SSRN Electronic Journal, 2017
This study examines whether CEO duality affects the association between board gender composition, dividend policy and cost of debt among S&P 500 firms. Our results show that board gender composition positively impacts both a firm's propensity to pay dividends and the level of payouts. However, this positive association is only present in firms without CEO duality. We find no significant association between board gender composition and cost of debt, but when we split the sample into firms with and without CEO duality, we find a positive association for the former and a negative association for the latter. Overall, these results suggest that CEO duality could undermine the role of board gender composition in influencing dividend policy and cost of debt.
UNIMAS Review of Accounting and Finance, 2022
It is undeniable that corporate governance is an important element towards the capital structure across industries as it affects the financial decision which drives the companies' reputation and revenue. However, the big question is what drives the relationship of corporate governance and capital structure within the industry. As we move into the twenty-first century, diversity and inclusion has been discussed globally. This shift can differentiate the board decision on financial strategy in terms of capital structure. Hence, the motivation behind this research is to investigate the moderating role of women on board towards the relationship of corporate governance and capital structure. Data is collected from annual report of 24 listed energy firms in Bursa Malaysia over the period of 2015 to 2019. As a result, to determine the research objectives, this study employs descriptive statistical analysis, correlation coefficient, and random effects regression models. Moreover, the Generalized Method of Moments (GMM) estimate is used for robustness, and the results obtained differed from the random effect models. According to the findings of this study, board size and the proportion of women on boards of directors have a negative and substantial link with capital structure in terms of leverage level. Meanwhile, there is a positive and significant association between CEO duality and firm leverage, but no relationship exists between board independence and leverage. Additionally, when there is a large proportion of female directors on the board, the influence of board size on the firm's leverage level is beneficial.