The Gender Effect on Banking Performance in Indonesia

Abstract

This paper aims to study the determinants of banking performance from human equality perspective. Banking is a service industry which heavily depends on the human resources. Therefore, the research will focus on the diversity of employees and board member in determining the financial performance. We have analysed 2 ratios which are the gender diversity of total employees and gender diversity in board members. The dependent variable is Return on Asset (ROA). We use linear regression. The samples are 11 banks which are categorized under book 4 and book 3 as per Indonesia Central Bank. The empirical result shows that the board member diversity significantly influences the banking performance. However, the diversity has negative influence on the banking performance.

Impact of Board of Directors on Performance of Brazilian Banks

“…This relationship was previously investigated by Johan and Hapsari (2020); Handa (2018); Kramaric and Pervan (2016); Belhaj and Mateus (2016); Kilic (2015); Fidanoski et al (2014); Liang et al (2013); Pathan and Faff (2013); Bonn et al (2004). However, only Johan and Hapsari (2020), Kilic (2015) and Fidanoski et al (2014) showed significance in the studies, which accompany the findings of this research.…”

“…Aslam and Haron (2020);Gyamerah et al (2020);Johan and Hapsari (2020);Haris et al (2019);Aktan et al (2018);AlSagr et al (2018);Hajer and Anis (2018);Chou and Buchdadi (2017);Isik and Ince (2016);Belhaj and Mateus (2016);Bukair and Rahman (2015);Boussaada and Karmani (2015);Kilic (2015);Fidanoski et al (2014);Chaarani (2014);Abdul et al (2014);Liang et al (2013);Pathan and Faff (2013);Adams and Mehran (2012);Andres and Vallelado (2008);Adams and Mehran (2008);Bonn et al (2004).ROEMeasures the profitability of the company's shareholders 'equity, defined by the ratio between Net Income and Shareholders' Equity Aslam and Haron (2020)Haris et al (2019);Aktan et al (2018);Handa (2018);AlSagr et al (2018);Hajer and Anis (2018);Kramaric and Pervan (2016);Belhaj and Mateus (2016);Bukair and Rahman (2015);Boussaada and Karmani (2015);Kilic (2015); Chaarani (2014); Fidanoski et al (2014); Liang et al (2013); Pathan and Faff (2013(2020); Gyamerah et al (2020); Haris et al (2019); Aktan et al (2018); Handa (2018); AlSagr et al (2018); Hajer and Anis (2018); Chou and Buchdadi (2017); Kramaric and Pervan (2016); Isik and Ince (2016); Belhaj and Mateus (2016); Bukair and Rahman (2015); Boussaada and Karmani (2015); Kilic (2015); Chaarani (2014); Fidanoski et al (2014); Abdul et al (2014); Liang et al (2013); Pathan and Faff (2013); Adams and Mehran (2012); Andres and Vallelado (2008); Adams and Mehran (2008); Bonn et al (2004).…”

“…;Gyamerah et al (2020);Aktan et al (2018);Handa (2018);Hajer and Anis (2018);Chou and Buchdadi (2017);Belhaj and Mateus (2016);Boussaada and Karmani (2015);Chaarani (2014);Abdul et al (2014);Liang et al (2013). CM Defined by the percentage of female counselors to the total number of members of the board of directors Johan and Hapsari (2020)Handa (2018);Kramaric and Pervan (2016);Belhaj and Mateus (2016);Kilic (2015);Fidanoski et al (2014);Liang et al (2013);Pathan and Faff (2013);Bonn et al (2004).MICMeasured by the average age of the counselors Liang et al (2013)…”

Employee diversity and firm value of listed Nigerian consumer goods manufacturing companies

“…Suciu, Noja, and Cristea (2020) highlighted the value of social inclusion, professional and personal growth, and gender and cultural diversity in reducing risks faced by European businesses and enhancing profitability. Furthermore, Johan and Hapsari (2020) assessed the impact of gender on Indonesian banking performance and discovered that diversity had a detrimental effect on banking performance.…”