The Effect of the Proportion of Female Directors and Independent Board of Commissioners on Financial Performance: Evidence from LQ-45 Companies on the Indonesia Stock Exchange 2022–2024
DOI:
https://doi.org/10.24256/kharaj.v8i2.10439Keywords:
Female Directors; Independent Commissioners; Return on Assets; Corporate Governance; LQ-45Abstract
This study examines the influence of the proportion of female directors and independent board commissioners on corporate financial performance, measured by Return on Assets (ROA), among firms listed in the LQ-45 index on the Indonesia Stock Exchange (IDX) over the 2022–2024 period. Employing a quantitative causal design, purposive sampling yielded 30 companies across three fiscal years, producing 88 panel data observations sourced from annual reports via the IDX portal and Thomson Reuters Eikon Refinitiv. Panel data regression was conducted using a Random Effect Model (REM) estimated through Estimated Generalized Least Squares (EGLS) with cross-section weighting in STATA to address heteroscedasticity and autocorrelation. Empirical findings reveal that the proportion of female directors (PDP) exerted a positive and marginally significant effect on ROA (β = 535.4451, p = 0.1278) at the 90% confidence level, partially supporting H1. Conversely, the proportion of independent commissioners (DKI) demonstrated no statistically significant effect on ROA (β = −13,446.2347, p = 0.6812), attributable to negligible variability in DKI values across sample firms (SD = 0.0042) arising from homogeneous compliance with Financial Services Authority (OJK) regulatory thresholds, thereby rejecting H2. The model's R² of 3.30% indicates that predominant determinants of ROA reside beyond board compositional variables. Grounded in Resource Dependence Theory and Agency Theory, these findings underscore the strategic significance of directorial gender diversity for firm profitability in large capitalization Indonesian enterprises. Regulatory authorities are encouraged to institute more stringent gender diversity mandates, while future research should broaden the observation horizon and examine supplementary governance constructs.
References
Alrawashedh, Albawwat, A. H., Almansour, A. Y., Zobi, M. Al, & Habis, N. (2020). The Effect Of Board Of Directors And Audit Committee Characteristics On Company Performance In Jordan. International Journal Of Financial Research, 11(6), 10. Https://Doi.Org/10.5430/Ijfr.V11n6p10
Angwaomaodoko, E. A. (2024). Corporate Governance And Firm Performance: Investigating The Impact Of Governance Structures On Economic Outcome. Path Of Science, 10(12), 1001–1011. Https://Doi.Org/10.22178/Pos.112-1
Anwar, N. Y., Kadir, & Kasyful. (2021). Pengaruh Kinerja Keuangan, Karakteristik Perusahaan Dan Corporate Governance Terhadap Pengungkapan Sustainability Report.
Ardana, Y. (2019). Implementasi Good Corporate Governance (Gcg) Dalam Mengukur Risiko Dan Kinerja Keuangan Bank Syariah Di Indonesia. Jurnal Masharif Al-Syariah Jurnal Ekonomi Dan Perbankan Syariah, 4(1). Https://Doi.Org/10.30651/Jms.V4i1.2587
Argandoña, S. A. A. N. D. A. (2009). Responsible Corporate Governance: Towards A Stakeholder Board Of Directors? Ssrn Electronic Journal. Https://Doi.Org/10.2139/Ssrn.1349090
Awad, L. A. S., Robert, G., & Antoine, B. (2018). Structural And Market-Related Factors Impacting Profitability: A Cross Sectional Study Of Listed Companies. Arab Economic And Business Journal, 13(2), 125–133. Https://Doi.Org/10.1016/J.Aebj.2018.09.001
Brammer, J. G., Bruce A Rayton, & Stephen. (2015). Women On Corporate Boards. Business & Society, 55(8), 1157–1196. Https://Doi.Org/10.1177/0007650315613980
Budiman, Igidius F., & Juliarto, A. (2024). Pengaruh Kepemilikan Saham Dan Atribut Dewan Direksi Terhadap Struktur Modal Dengan Keberlanjutan Perusahaan Sebagai Variabel Moderasi. Diponegoro Journal Of Accounting, 13(4), 1–15. Http://Ejournal-S1.Undip.Ac.Id/Index.Php/Accounting
Chalabi, R., & Jarraya, B. (2023). How Corporate Governance Mechanisms Improve The Financial Performance Of Shareholding Companies. International Journal Of Business & Management Studies, 04(06), 44–52. Https://Doi.Org/10.56734/Ijbms.V4n6a6
Doan, T.-T. T. (2019). Profitability Of Real Estate Firms: Evidence Using Gmm Estimation. Management Science Letters, 327–332. Https://Doi.Org/10.5267/J.Msl.2019.8.038
Fathmaningrum, E. S., & Renaldo, M. (2024). Faktor-Faktor Yang Memengaruhi Kinerja Keuangan Perusahaan Manufaktur: Studi Empiris Di Indonesia Dan Singapura. Reviu Akuntansi Dan Bisnis Indonesia, 8(2), 256–271. Https://Doi.Org/10.18196/Rabin.V8i2.22049
Firmansyah, R., Dzulfikar, A., & Amrie. (2022). Free Cash Flow, Financial Distress, And Earnings Management: The Moderating Role Of Independent Commissioner. Jurnal Reksa Rekayasa Keuangan Syariah Dan Audit, 9(2), 74–90. Https://Doi.Org/10.12928/Jreksa.V9i2.7333
Gakhar, A., & Kamlesh. (2019). Impact Of Macroeconomic Variables On Financial Performance Of Indian Banking Sector. International Journal Of Engineering Applied Sciences And Technology, 4(3), 259–265. Https://Doi.Org/10.33564/Ijeast.2019.V04i03.043
García, C. J., & Herrero, B. (2021). Female Directors, Capital Structure, And Financial Distress. Journal Of Business Research, 136, 592–601. Https://Doi.Org/10.1016/J.Jbusres.2021.07.061
Guluma, T. F. (2021). The Impact Of Corporate Governance Measures On Firm Performance: The Influences Of Managerial Overconfidence. Future Business Journal, 7(1). Https://Doi.Org/10.1186/S43093-021-00093-6
Hair, J. F. , Black, W. C. , Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th Ed.).
Hasibuan, A. H., Hasibuan, L., & Efendi, S. (2023). Tax Aggressiveness, Capital Structure, Corporate Governance Dan Firm Performance. International Journal Of Economic Research And Financial Accounting (Ijerfa), 1(2). Https://Doi.Org/10.55227/Ijerfa.V1i2.28
Hassaan, H. E., Zalata, A. M., & Marwa. (2022). Attributes Of Female Directors And Accruals-Based Earnings Management. Cogent Business & Management, 9(1). Https://Doi.Org/10.1080/23311975.2022.2139212
Hesniati, K., Tania, S., & Hesniati. (2022). The Effect Of Gender Diversity On Firm Performance In Indonesia. Jurnal Manajemen Strategi Dan Aplikasi Bisnis, 5(2), 267–284. Https://Doi.Org/10.36407/Jmsab.V5i2.667
Hillman, A. J., Withers, M. C., & Collins, B. J. (2009). Resource Dependence Theory: A Review. Journal Of Management, 35(6), 1404–1427. Https://Doi.Org/10.1177/0149206309343469
Homroy, C. G., & Swarnodeep. (2017). Female Directors, Board Committees And Firm Performance. European Economic Review, 102, 19–38. Https://Doi.Org/10.1016/J.Euroecorev.2017.12.003
Isnalita, I., & Natalia. (2023). Do Females On Boards Enhance Firm Performance? Evidence From Indonesia Manufacturing Firm. Contaduría Y Administración, 69(1), 431. Https://Doi.Org/10.22201/Fca.24488410e.2024.4983
Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. Journal Of Financial Economics, 3(4), 305–360. Https://Doi.Org/10.1016/0304-405x(76)90026-X
Johnson, W. R., Schumm, Kariga, K. P., Jaimee, L. H., Bertha, A. J., & Gralon, A. (2013). Determining Statistical Signifi Cance (Alpha) And Reporting Statistical Trends: Controversies, Issues, And Facts1. Comprehensive Psychology, 2(1). Https://Doi.Org/10.2466/03.Cp.2.10
Juwari, Dwi, S., & Nurlia, N. (2022). Good Corporate Governance Characteristic, Profitability And Firm Value: Evidence From Indonesia. Iqtishoduna, 18(2), 99–121. Https://Doi.Org/10.18860/Iq.V18i2.17056
Kamilah, F., Meutia, M., Bastian, E., & Muchlish, M. (2025). The Role Of Corporate Governance Mechanisms, Debt Policy, Profitability, And Corporate Social Responsibility In Strengthening Company Financial Performance. Decision Science Letters, 14(4), 943–954. Https://Doi.Org/10.5267/J.Dsl.2025.7.004
Kluemper, K., Gilley, M., Pledger, K., Coombs, J. E., Bell, M. P., & Donald H. (2019). Board Gender Diversity, Social Performance, And Ceo Compensation. Journal Of Business Strategies, 36(2), 1–27. Https://Doi.Org/10.54155/Jbs.36.2.1-27
Machfudt, Y. (2023). Kinerja Keuangan Dalam Perspektif Lingkungan: Studi Pada Perusahaan Manufaktur Indonesia. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi, 8(2), 158–168. Https://Doi.Org/10.24815/Jimeka.V8i2.21063
Maulana, I. (2020). Analisis Pengaruh Dewan Komisaris Independen, Kepemilikan Manajerial Dan Kepemilikan Institusional Terhadap Kinerja Perusahaan Jasa Keuangan Di Indonesia. Jurnal Reksa Rekayasa Keuangan Syariah Dan Audit, 7(1), 11. Https://Doi.Org/10.12928/J.Reksa.V7i1.2455
Metwally, A. A., & Abdelmoneim, B. M. (2025). Esg Disclosure And Firm Performance: Do Gender Diversity And Sustainability Committee Matter? Cogent Business & Management, 12(1). Https://Doi.Org/10.1080/23311975.2025.2545610
Pamungkas, M. C. A. N. D. B. P. I. A. N. D. H. H. A. N. D. R. H. A. N. D. I. D. (2020). Corporate Governance, Firm Performance And Capital Structure: Evidence From Indonesia. Research In World Economy, 11(1), 48. Https://Doi.Org/10.5430/Rwe.V11n1p48
Panigrahi, A. K., & Vachhani, K. (2021). Financial Analysis By Return On Equity (Roe) And Return On Asset (Roa)-A Comparative Study Of Hul And Itc. Journal Of Management Research And Analysis, 8(3), 131–138. Https://Doi.Org/10.18231/J.Jmra.2021.027
Park, Y. K. L. A. N. D. J. Y. A. N. D. J. (2017). The Impacts Of Independent Director And Ceo Duality On Performance In The Chinese Post‐Institutional‐Transition Era. Canadian Journal Of Administrative Sciences / Revue Canadienne Des Sciences De L Administration, 35(4), 620–634. Https://Doi.Org/10.1002/Cjas.1468
Pasaribu, P. (2017). Female Directors And Firm Performance: Evidence From Uk Listed Firms. Gadjah Mada International Journal Of Business, 19(2), 145. Https://Doi.Org/10.22146/Gamaijb.15619
Pfeffer, J. (2016). Resource Dependence. In Palgrave Macmillan Uk Ebooks (Pp. 1–3). Palgrave Macmillan. Https://Doi.Org/10.1057/978-1-349-94848-2_739-1
Ratnasari, A. S., & Lilis. (2019). Pengaruh Perputaran Modal Kerja Dan Perputaran Persediaan Terhadap Profitabilitas (Roa) Pada Pt Mayora Indah Tbk Tahun 2010- 2016. Jimf (Jurnal Ilmiah Manajemen Forkamma), 2(2). Https://Doi.Org/10.32493/Frkm.V2i2.3410
Rifqi, H., Alden, R., & Maher, A. A.-S. (2023). The Impact Of Good Corporate Governance (Gcg) On Manufacturing Financial Performance: Evidence Of Listed Companies On The Stock Exchange (Idx). International Journal Of Professional Business Review, 8(6). Https://Doi.Org/10.26668/Businessreview/2023.V8i6.1656
Santi, R. M., Setyarini, Y., Paramitha, M., Suklimah Ratih, & Chitra. (2025). Apakah Independensi Dalam Tata Kelola Meningkatkan Kinerja Perusahaan? Perspektif Teori Agensi Dan Stakeholder. Riggs Journal Of Artificial Intelligence And Digital Business, 4(2), 441–449. Https://Doi.Org/10.31004/Riggs.V4i2.518
Setiawan, M., & Setyawati, C. Y. (2020). The Influence Of Perceived Ease Of Use On The Intention To Use Mobile Payment: Attitude Toward Using As Mediator. Journal Of Accounting And Strategic Finance, 3(1), 18–32. Https://Doi.Org/10.33005/Jasf.V3i1.67
Setiawan, Y., Anniaryani A, Sna, R., & Doddy. (2018). Apakah Struktur Dewan Komisaris Berpengaruh Terhadap Kinerja Perusahaan? Deleted Journal, 8(3), 597. Https://Doi.Org/10.22441/Mix.2018.V8i3.009
Shaaban, N. Y., & Alshurafat, H. (2025). The Female Directors’ Effect On A Firm’s Performance: Evidence Using Us Firms. Acta Psychologica, 258, 105165. Https://Doi.Org/10.1016/J.Actpsy.2025.105165
Sulistiana, D. F., & Indra. (2024). Good Corporate Governance Improves Banking Financial Performance. International Journal Of Applied Finance And Business Studies, 11(4), 976–985. Https://Doi.Org/10.35335/Ijafibs.V11i4.268
Susanto, D. A., Serly, & Androni. (2024). Does Gender Diversity Among The Board Of Directors Significantly Affect A Company’s Financial Performance? Jurnal Manajemen, 15(1), 14–29. Https://Doi.Org/10.32832/Jm-Uika.V15i1.15271
Utama, N. N. P. A. N. D. C. A. (2020). The Effect Of Ownership Structure And Board Independence Towards Overinvestment Behavior Of Family Firm In Indonesia. Kne Social Sciences. Https://Doi.Org/10.18502/Kss.V4i6.6666
Wicaksono, B. (2024). Studi Empiris Pada Perusahaan Manufaktur Sektor Industri Dasar Dan Kimia Yang Terdaftar Pada Bei 2018-2022. 18(1). Https://Doi.Org/10.46306/Jbbe.V18i1
Wokker, N. J. B., Robert Breunig, & Chris. (2023). Female Board Representation And Corporate Performance: A Review And New Estimates For Australia. In Ssrn Electronic Journal. Relx Group (Netherlands). Https://Doi.Org/10.2139/Ssrn.4487824
Yanto, Simaremare, J., Olin, M. N., Purwaningrum, D., & Adi. (2025). How The Size Of The Independent Commissioners And Board Of Commissioners Affects Profitability. International Journal Of Research And Innovation In Social Science, 1091–1097. Https://Doi.Org/10.47772/Ijriss.2025.90900098
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Siska Dewi Wulandari, Lalu Hamdani Husnan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
