Gender Diversity And Firms' Financial Performance Of Bumn In Indonesia

Abstract

This research aims to examine the influence of female gender diversity on the board of directors and board of commissioners on company financial performance. Data was taken from all State-Owned Enterprises (BUMN) companies listed on the Indonesia Stock Exchange (BEI) in 2018-2022. The research method used is quantitative research with Partial Least Squares (PLS) analysis to examine the relationship between the variable gender diversity of women on the board of directors and board of commissioners on the company's financial performance. The research results show that female gender diversity on the board of directors has a significant negative effect on the company's financial performance, while female gender diversity on the board of commissioners has a significant positive effect on the company's financial performance. It is anticipated that the findings of this study will offer new insight into the importance of gender diversity in the leadership structure of state-owned companies in Indonesia. It is hoped that the results of this research can help state-owned companies consider new strategies in increasing gender diversity on the board of directors and board of commissioners to support better financial performance.