Title:
The Effect of Women on Board on Financial Performance: the Mediating Role of Corporate Social Responsibility

Authors:
Nicky Gilang Wicaksono, Bambang Hadinugroho, Indonesia

Abstract:

This study aimed to present empirical evidence regarding the effect of women on board on financial performance with corporate social responsibility as the mediating variable. Women on board or a company’s top management have become one of the attention-drawing issues in organizational governance. This topic gains even more attention in Indonesia with its patriarchal culture, which may affect the perspective of employment in this country. A company needs to focus not only on its shareholders’ interests but also on its stakeholders. A company’s success and sustainability may depend on its managers’ ability to create values and satisfy stakeholders’ interests. This study took ninety-six manufacturing companies listed on Indonesia Stock Exchange (IDX) between 2017 and 2019 as study samples, selected using purposive sampling technique following predetermined criteria. Data were analyzed using linear regression analysis with intervening regression, consisting of two stages: coefficient difference and coefficient multiplication. The result showed that women on board negatively affected CSR. It also showed that CSR did not affect financial performance and did not mediate the relationship between women on board and financial performance. Women on board tend to lower the company’s  CSR-related policies, which is likely followed by a lower financial performance.

DOI: https://doi.org/10.51505/IJEBMR.2023.7408