Do The Gender Diversity in The Board Structures Have Impact on Managerial Firm Performance?

Author (s)

(1)  Wisnu Panggah Setiyono   (Universitas Muhammadiyah Sidoarjo)  
(2) * Bayu Hari Prasojo   (Universitas Muhammadiyah Sidoarjo)  
(*) Corresponding Author


Corporate governance has been perceived to be the driver of corporate performance especially if we associated the issue with gender diversity. However, literature has rare acknowledged that gender diversity issues on corporate governance have impact on the managerial performance.

The purpose of this study is to investigate the impact of gender diversity in the structure and ownership of the boards in relation with the companie’s performance in Indonesian firms. The study employed data sample of companies which the stocks are actively traded on the Indonesia Stock Exchange.

By using panel data regression model, we determined the data of cross section and time series on 2013, 2014 and 2015. The sampling was simple random sampling, and the analytical techniques were panel data regression analysis. We also employed several hypothesis testing including Correlation analysis, Normality Test, multicolinearity, heteroscedastisity, and model estimation test.

The results of this study, we found that the gender diversity in the boards have not significantly effect. However, the gender diversity in the board structures has negative effect and significant on the company's performance. Furthermore, this study also found that institutional ownership has negative effect on the company's performance. Finally, the managerial ownership showed similar results, namely a significant negative effect on the company’s performance.


corporate governance, gender diversity, board structure, ownership structure, Return on Equity (ROE)

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