Board Diversity and Financial Performance: Evidence from Indonesia’s Manufacturing Sector

Board Diversity and Financial Performance: Evidence from Indonesia’s Manufacturing Sector

Authors

  • Muharrom Firmansyah Universitas Islam Negeri Sunan Ampel Surabaya
  • Ajeng Tita Nawangsari Universitas Islam Negeri Sunan Ampel Surabaya
  • Bima Rafly Fachrezzi Universitas Islam Negeri Sunan Ampel Surabaya

DOI:

https://doi.org/10.33603/jka.v10i1.10834

Keywords:

Financial performance, Gender diversity, Age diversity, Nationality diversity, Educational diversity

Abstract

Financial performance is a crucial topic in research as it serves as a key indicator for investors, creditors, and internal corporate stakeholders. By evaluating financial performance, investors and creditors can assess risks, while management can utilize the insights to refine corporate strategies and policies. This study aims to analyze the influence of board diversity on the financial performance of manufacturing companies listed on the Indonesia Stock Exchange. This research employs a quantitative approach using secondary data obtained from the annual reports of manufacturing companies listed on the Indonesia Stock Exchange for the period 2020-2023. The sample consists of 116 companies, selected using the purposive sampling method. Panel data is analyzed using Eviews 12 software and multiple regression analysis, complemented by the Chow and Hausman specification tests. The findings indicate that gender diversity has a significant influence on financial performance, whereas age diversity, nationality diversity, and educational diversity do not exhibit a significant effect. This study provides recommendations for corporate management to pay greater attention to board composition, particularly regarding gender diversity, given its positive and significant impact on financial performance. Management is encouraged to foster an inclusive work environment and ensure equal opportunities for all board members in strategic decision-making processes. Furthermore, companies are advised to enhance transparency in financial performance reporting to build investor and stakeholder trust. By implementing sound corporate governance policies and optimizing board diversity, firms can enhance their competitiveness and long-term business sustainability.

References

Abbas, A., & Frihatni, A. A. (2023). Gender diversity and firm performances suffering from financial distress: evidence from Indonesia. Journal of Capital Markets Studies, 7(1), 91–107. https://doi.org/10.1108/JCMS-12-2022-0045.

Alhosani, N., & Nobanee, H. (2023). Board gender diversity and corporate social responsibility: A bibliometric analysis. Heliyon, 9. https://doi.org/10.1016/j.heliyon.2022.e12734.

Alhossini, M., Zalata, A., Samaha, S., & Hessian, M. (2024). Monitoring female directors and earnings management, does corporate governance matter?. Cogent Business & Management, 11. https://doi.org/10.1080/23311975.2024.2396538.

Anisa, S. T., & Anwar, S. (2021). Determinan Profitabilitas Bank Umum Syariah Di Indonesia Dengan Tingkat Likuiditas Sebagai Variabel Intervening. JPS (Jurnal Perbankan Syariah), 2(2), 131–149. https://doi.org/10.46367/jps.v2i2.346.

Areneke, G., Adegbite, E., Tunyi, A., & Hussain, T. (2023). Female directorship and ethical corporate governance disclosure practices in highly patriarchal contexts. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2023.114028.

Birindelli, G., Iannuzzi, A. P., & Savioli, M. (2019). The impact of women leaders on environmental performance: Evidence on gender diversity in banks. Corporate Social Responsibility and Environmental Management, 26(6), 1485–1499. https://doi.org/10.1002/csr.1762.

Brahma, S., Nwafor, C., & Boateng, A. (2021). Board gender diversity and firm performance: The UK evidence. International Journal of Finance and Economics, 26(4), 5704–5719. https://doi.org/10.1002/ijfe.2089.

Cambrea, D., Paolone, F., & Cucari, N. (2023). Advisory or monitoring role in ESG scenario: Which women directors are more influential in the Italian context?. Business Strategy and the Environment. https://doi.org/10.1002/bse.3366.

Chatterjee, C., & Nag, T. (2022). Do women on boards enhance firm performance? Evidence from top Indian companies. International Journal of Disclosure and Governance, 20, 155 - 167. https://doi.org/10.1057/s41310-022-00153-5.

Chen, J., Dedman, E., Kim, J., Metwally, T., & Stark, A. (2024). Board Nationality Diversity and Firm Value. British Journal of Management. https://doi.org/10.1111/1467-8551.12872.

Darmawan, J. (2022). Pengaruh Keberagaman Gender dan Pengungkapan Risiko Terhadap Efisiensi Investasi (The Effect of Gender Diversity and Risk Disclosure on Investment Efficiency ). Goodwood Akuntansi Dan Auditing Reviu (GAAR), 1(1), 29–47.

Destriana, N., & Sebastian, I. (2025). Mitigating Agency Conflicts: The Role of Board Characteristics. International Journal of Economics, Business and Management Research. https://doi.org/10.51505/ijebmr.2025.9811.

Dodd, O., & Zheng, B. (2022). Does Board Cultural Diversity Contributed by Foreign Directors Improve Firm Performance? Evidence from Australia. Journal of Risk and Financial Management. https://doi.org/10.3390/jrfm15080332.

Egbunike, C. F., Igbinovia, I. M., Oranefo, C. P., & Iyoha, A. O. I. (2023). Gender heterogeneity in the boardroom and corporate sustainability performance of quoted manufacturing firms in Nigeria. Asian Journal of Accounting Research, 8(4), 334–347. https://doi.org/10.1108/AJAR-01-2022-0014.

Eliya, S., & Suprapto, Y. (2022). Pengaruh Keberagaman Gender terhadap Kinerja Keuangan pada Perusahaan Manufaktur Barang Konsumsi Publik di Indonesia. SEIKO : Journal of Management & Business, 5(2). https://doi.org/10.37531/sejaman.v5i1.2024.

Elzahar, H., Zalata, A., & Hassaan, M. (2022). Attributes of female directors and accruals-based earnings management. Cogent Business & Management, 9. https://doi.org/10.1080/23311975.2022.2139212.

EmadEldeen, R., Elbayuomi, A., Elmoursy, H., Bouaddi, M., & Basuony, M. (2025). Does Board Diversity Drive Sustainability? Evidence from UK-Listed Companies. Sustainability. https://doi.org/10.3390/su17031177.

Fuadah, L. L., Yuliani, & Safitri, R. H. (2018). Pengungkapan Sustainablity Reporting di Indonesia. In Citrabooks Indonesia.

Ghozali, I., & Ratmono, D. (2020). Analisis Multivariat dan Ekonometrika Teori, Konsep dan Aplikasi dengan Eviews 10 (Edisi 2) (Vol. 1). Fakultas Ekonomi dan Bisnis Universitas Diponegoro.

Gujarati, N. D., & Porter, D. C. (2013). Dasar-Dasar Ekonometrika, Buku 1 dan Buku 2 Edisi 5, Penerjemah: Raden Carlus Mangunsong. Jakarta: Salemba Empat.

Gunawan, B. V., & Wijaya, H. (2021). Perempuan , Dan Komite Audit Perempuan Terhadap. Jurnal Ilmiah Mahasiswa Akuntansi, 10(2), 61–69. https://doi.org/10.33508/jima.v10i2.3563.

Hana, N., Dewi, R., & Wijayanti, A. (2022). The Influence of Corporate Governance, Gender Diversity, CSR on Tax Aggressiveness in Companies Listed on the IDX. Jurnal AKSI (Akuntansi Dan Sistem Informasi), 7(1), 9–18. https://doi.org/10.32486/aksi.v7i1.224.

Hu, J., Hung, M., & Li, S. (2025). Reshaping Corporate Boards Through Mandatory Gender Diversity Disclosures: Evidence from Canada. Manag. Sci., 71, 10371-10393. https://doi.org/10.1287/mnsc.2023.00509.

Humas. (2022). Hilirisasi Industri Picu Peningkatan Kinerja Ekspor Nasional. Setkab.Go.Id. https://setkab.go.id/menperin-hilirisasi-industri-picu- peningkatan-kinerja-ekspor-nasional/.

Intia, L. C., & Azizah, S. N. (2021). Pengaruh Dewan Direksi, Dewan Komisaris Independen, dan Dewan Pengawas Syariah terhadap Kinerja Keuangan Perbankan Syariah di Indonesia. Jurnal Riset Keuangan Dan Akuntansi, 2, 46– 59.

Islam, R., French, E., & Ali, M. (2022). Evaluating board diversity and its importance in the environmental and social performance of organizations. Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/csr.2259.

Janahi, M., Millo, Y., & Voulgaris, G. (2022). Age diversity and the monitoring role of corporate boards: Evidence from banks. Human Relations, 76, 1599 - 1633. https://doi.org/10.1177/00187267221108729.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Corporate Governance: Values, Ethics and Leadership, 77–132. https://doi.org/10.4159/9780674274051-006.

Kabara, A., Khatib, S., Bazhair, A., & Sulimany, H. (2022). The Effect of the Board’s Educational and Gender Diversity on the Firms’ Performance: Evidence from Non-Financial Firms in Developing Country. Sustainability. https://doi.org/10.3390/su141711058.

Khan, I., Khan, I., Khan, I., Suleman, S., & Ali, S. (2023). Board diversity on firm performance from resource-based view perspective: new evidence from Pakistan. International Journal of Productivity and Performance Management. https://doi.org/10.1108/ijppm-01-2022-0055.

Kusuma, L., Wijaya, H., & Kristina, N. (2023). Peran Investasi Teknologi Informasi, Efektivitas Rapat Dewan Komisaris, Keberagaman Usia Dan Latar Belakang Pendidikan Dewan Direksi Dalam Mempengaruhi Nilai Perusahaan Pada Perusahaan Di Bursa Efek Indonesia. Jurnal Ilmiah Mahasiswa Akuntansi, 12(2), 112–123. https://doi.org/10.33508/jima.v12i2.5352.

Kusumastuti, S., Supatmi, & Perdana Sastra. (2021). Pengaruh Board Diversity terhadap Nilai Perusahaan dalam Perspektif Corporate Governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98. https://www.researchgate.net/publication/43330344.

Leonard, A., Novianti, T., & Mulatsih, S. (2021). Analysis of the Impact of Exports and Investment on Indonesian Economic Growth. International Journal of Scientific Research in Science, Engineering and Technology. https://doi.org/10.32628/ijsrset21853.

Lestari, R. A. (2021). Gender Diversity, Board Composition, Intellectual Capital and Its Effect on Firm Performance. Management Analysis Journal, 10(1), 62–76. https://doi.org/10.15294/maj.v10i1.45522.

Mabruroh, & Anwar, S. (2022). Pengaruh Green Accounting, Ukuran Perusahaan, Dan Leverage Terhadap Financial Performance Dengan Nilai Perusahaan Sebagai Variabel Moderasi. COSTING:Journal of Economic, Business and Accounting, 5(2).

Mallidis, I., Giannarakis, G., & Sariannidis, N. (2024). Impact of board gender diversity on environmental, social and ESG controversies performance: The moderating role of united nations global compact and ISO. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2024.141047.

Mustakini, J. H. (2021). Metodologi Penelitian Bisnis: Salah Kaprah dan Pengalaman-Pengalaman (6th ed.). BPFE-YOGYAKARTA.

Napitupulu, R. B., Simanjuntak, T. P., Hutabarat, L., Damanik, H., Harianja, H., Sirait, R. T. M., & Lumban Tobing, C. E. R. (2021). Penelitian Bisnis, Teknik dan Analisa dengan SPSS-STATA-Eviews. In Madenatera. Madenatera.

Natalia, L., Arief, M., & Widyaningsih, A. (2023). Pengaruh Diversitas Gender Dewan terhadap Kinerja Perusahaan (Studi Global pada berbagai Negara di Dunia). Jurnal Pendidikan Akuntansi (JPAK), 11(3), 288–298. https://doi.org/10.26740/jpak.v11n3.p288-298.

Neukirchen, D., Posch, P., & Betzer, A. (2022). Board Age Diversity and Corporate Misconduct. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4099382.

OECD. (2022). OECD Economic Outlook, Interim Report September 2022. OECD Economic Outlook.

Pramesti, A. A., & Nita, R. A. (2022). Pengaruh Diversitas Dewan Direksi Terhadap Nilai Perusahaan. Jurnal Ilmiah Akuntansi Dan Keuangan (JIAKu), 1(2), 188–198. https://doi.org/10.24034/jiaku.v1i2.5369.

Putra, F., & Setiawan, D. (2025). Diversity of the board, nomination committee and earnings management in the two-tier system. Journal of Derivatives and Quantitative Studies: 선물연구. https://doi.org/10.1108/jdqs-08-2024-0037.

Putri, I. D. R., Waharini, F. M., Purwantini, A. H., Silmi, Tanno, A., & Firdaus. (2021). Efek Moderasi Religiusitas Intrinsik , Gender Dan Usia. ACE│Accounting Research Journal, 1(1), 383–400. https://journal.feb.unipa.ac.id/index.php/ace.

Puthusserry, P., Khan, Z., Nair, S., & King, T. (2021). Mitigating Psychic Distance and Enhancing Internationalization of Fintech SMEs from Emerging Markets: The Role of Board of Directors. British Journal of Management. https://doi.org/10.1111/1467-8551.12502.

Rahma, S. N., & Mawardi, W. (2023). Pengaruh Board Diversity terhadap Kinerja Perusahaan dengan Kepemilikan Institusional sebagai Variabel Moderating. DIPONEGORO JOURNAL OF MANAGEMENT, 12(1), 1–14. http://ejournal-s1.undip.ac.id/index.php/dbr.

Rahman, H., & Zahid, M. (2021). Women directors and corporate performance: firm size and board monitoring as the least focused factors. Gender in Management: An International Journal, 36, 605-621. https://doi.org/10.1108/gm-12-2019-0252.

Roika, R., Salim, U., & Sumiati, S. (2019). Pengaruh Keragaman Dewan Direksi Terhadap Kinerja Keuangan Perusahaan. Iqtishoduna, 15(2), 115–128. https://doi.org/10.18860/iq.v15i2.7033.

Rokhilla Haris Lubis, N., Syahyunan, S., & Fauzan Azhmy, M. (2021). Pengaruh Keberagaman Dewan Direksi Terhadap Kinerja Keuangan Pada Perusahaan Manufaktur. Inovatif: Jurnal Ekonomi, Manajemen, Akuntansi, Bisnis Digital Dan Kewirausahaan, 1(2), 107–125. https://doi.org/10.55983/inov.v1i2.7.

Sari, I. P., & Asyik, N. F. (2018). Pengaruh Good Corporate Governance, Corporate Social Responsibility Dan Kinerja Keuangan Terhadap Nilai Perusahaan Manufaktur. Jurnal Ilmu Dan Riset Akuntansi, 7(10), 1–21.

Savitri, C., Faddila, S. P., Iswari, R., Anam, C., Syah, S., Mulyani, R., Sihombing, R., Kismawadi, R., Pujianto, A., Mulyati, A., Astuti, Y., Adinugroho, W. C., Imanuddin, R., Kristia, A., Nuraini, M., & Tirtana, S. (2021). STATISTIK Multivariat Dalam Riset (I. Ahmaddien, Ed.). www.penerbitwidina.com.

Serly, Ariadi, D., & Susanto, A. (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.

Sitanggang, A. (2021). Pengaruh Dewan Komisaris Independen, Komite Audit, Kepemilikn Manajerial Dan Kepemilikan Institusional Terhadap Kinerja Keuangan (Studi Empiris Pada Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia 2016-2018). Jurnal Riset Akuntansi & Keuangan, 7(2), 181–190. https://doi.org/10.54367/jrak.v7i2.1401.

Sudjana, K., Agustini, & Fatimah, S. (2023). Pengaruh Good Corporate Governance, Corporate Social Responsibility Dan Kinerja Keuangan Terhadap Nilai Perusahaan Manufaktur. Jurnal Ilmu Dan Riset Akuntansi, 7(10), 1–21.

Sugiyanto, E. K., Subagyo, E., Adinugroho, W. C., Jacob, J., Berry, Y., Nuraini, A., Sudjono, & Syah, S. (2022). Konsep dan Praktik Menggunakan Eviews (M. Surur, Ed.). www.academiapublication.com.

Suwasono, H., & Purwaningsih, E. (2023). Analisis Pengungkapan Sustainability Reporting Ditinjau dari Mekanisme Corporate Governance, Tipe Industri, Aktivitas Perusahaan, Konflik Kepentingan, Slack Resources. Edunomika, 8(1), 1–12.

Tan, C., & Taufiik, M. (2022). Board diversity and financial reporting quality: does firm size matter?. Journal of Contemporary Accounting. https://doi.org/10.20885/jca.vol4.iss2.art2.

Tania, K. S., & Hesniati, H. (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.

Tanjaya, A., & Kwarto, F. (2022). Tata Kelola Perusahaan Dalam Mengurangi Kecurangan Laporan Keuangan (Systematic Literature Review Dengan Metode Meta Sintesis). Jurnal Akademi Akuntansi, 5(3), 312–332. https://doi.org/10.22219/jaa.v5i3.21248.

Torchia, M., & Solarino, A. (2025). Gender, ethnic and nationality board diversity and firm performance: a meta-analysis. Corporate Governance: The International Journal of Business in Society. https://doi.org/10.1108/cg-08-2023-0332.

Tuo, S., Soro, G., Toure, T., Tou, S., & Adoni, K. (2025). Board Diversity Impact on Firm Performance: Evidence from Africa. Journal of Business Sectors. https://doi.org/10.62222/isog4817.

Yandwiputra, Ade Ridwan. (2026). 3 Eks Petinggi Pertamina Patra Niaga Dituntut 14 Tahun Penjara. Tempo. https://www.tempo.co/hukum/3-eks-petinggi-pertamina-patra-niaga-dituntut-14-tahun-penjara-2115067.

Zattoni, A., Leventis, S., Van Ees, H., & De Masi, S. (2022). Board diversity’s antecedents and consequences: A review and research agenda. The Leadership Quarterly. https://doi.org/10.1016/j.leaqua.2022.101659.

Downloads

Published

2026-05-20

How to Cite

Firmansyah, M., Nawangsari, A. T., & Fachrezzi, B. R. (2026). Board Diversity and Financial Performance: Evidence from Indonesia’s Manufacturing Sector. Jurnal Kajian Akuntansi, 10(1), 95–117. https://doi.org/10.33603/jka.v10i1.10834

Issue

Vol. 10 No. 1 (2026): JUNE 2026: Article in Progress

Section

Artikel

License

Copyright (c) 2026 Jurnal Kajian Akuntansi

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish in this journal agree to the following terms:
  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike (CC-BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.