Women Director, Financial Performance and Firm Value: Evidence Mining Sector Companies Listed in Indonesian Stock Exchange

Abstract

Study of female directors, financial performance and firm value has been widely carried out by previous researchers, but the results have not been consistent, namely several have a positive effect and some have a negative effect. Thus, we are interested in re-examining this topic. We aim to examine and analyze the effect of female directors and financial performance on firm value. And the control variables in this study are firm size, leverage and age. The population of this study are mining sector companies that are listed on the Indonesia Stock Exchange and have complete data on the variables studied for the 2017-2019 period totaling 31 companies with 93 years of observation and all researched (census). The study is secondary data, for women director data derived from annual reports obtained through idx.co.id. Meanwhile, financial data such as ROA, Tobin'Q, firm size, leverage and age were obtained from Thomson & Reuters. The data analysis technique in this study is path analysis used Stata 14. The results showed that female directors had a positive effect on firm value, while financial performance had a negative effect on firm value.

Keywords: Agency Problem, Female Directors, Financial Performance

DOI: 10.7176/RJFA/12-16-07

Publication date:August 31^st 2021