Are Women in BOD Affecting the Company’s Financial Performance?

Abstract

This research aims to provide advice to policy makers to increase the number of women on the board of directors with the aim of improving company performance. The purpose of this study is to look at the effect of women in the board of directors on company performance. Previous studies that have been conducted regarding the effect of women's representation in the board of directors on financial performance shows the inconsistency of research results. then the writer wants to want to re-examine the important role of women in the board of directors. This research was conducted on 47 manufacturing companies listed on the Indonesia Stock Exchange in the 20142018 period. This study uses random effect model for regression analysis. The results of the regression analysis show that the women in the board of directors had a significant positive effect on company performance. Keywords—board of directors, company performance, female directors, financial performance