Track: Women in Industry and Academia

Abstract

This study investigates if gender diversity on boards effectively drives firm profitability. For this purpose, this study uses two periods, before and during COVID 19 – Pandemic, to analyze how gender diversity existence strengthens or weakens the impact of the Board of Commissioners (BOC), Board of Directors (BOD), Independent Commissioner (IC) and Directors (ID) on firm profitability. This study also analyzed how BOC, BOD, IC, and ID influence firm profitability. The sample of this study consists of 40 Food and Beverage companies listed on the Indonesian Capital Market for the period 2011 - to 2021. The research models were estimated using panel data regression. The result shows that before Covid 19 – Pandemic, BOC and BOD had a significant negative impact on firm profitability. In contrast, IC and ID had a positive and significant impact on firm profitability. The existence of women in BOC, BOD, and as independent commissioners do not moderate the impact of BOC, BOD, and IC on firm profitability, while female directors had a positive role in moderating the impact of ID on firm profitability. During the Pandemic, BOD did not influence firm profitability, while BOC and ID had a negative influence, and IC positively influenced firm profitability. Interestingly, during a pandemic, the existence of women in BOC and BOD negatively moderates the influence of the BOC and BOD on firm profitability. On the contrary, the women's role as independent commissioners and director positively moderates the influence of independent commissioners and directors on firm profitability.