Board gender diversity, dividend payout, and firm value: study on IDX high dividend 20

Candy Candy(1*), Alex Alex(2), Dewi Khornida Marheni(3),

(1) Universitas Internasional Batam
(2) Universitas Internasional Batam
(3) Universitas Internasional Batam
(*) Corresponding Author

Abstract


The breadth of corporate governance boards encompasses a range of viewpoints and vigilant oversight in assessing management decisions and their impact on dividend strategies. This research seeks to explore how the inclusion of female board directors affects firm value through the dividend payout ratio, drawing on data from companies listed on the IDX High Dividend 20 stock index from 2018 to 2022. Financial and annual reports sourced from the Indonesia Stock Exchange (IDX) and the companies themselves serve as the basis for this investigation. Findings suggest that the involvement of women on boards influences the company's dividend payout ratio. However, there's no observed impact on firm value through this ratio. Interestingly, the presence of women in executive director roles is found to have a noteworthy, direct negative impact on firm value.

Keywords


Female Board Directors; Dividend Payout Ratio; Firm Value; IDX High Dividend 20

Full Text:

PDF

References


Abdullah, H., Isiksal, A. Z., & Rasul, R. (2023). Dividend policy and firm value: Evidence of financial firms from Borsa Istanbul under the IFRS adoption. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-04-2022-0147

Ain, N. N. (2021). Pengaruh investasi terhadap pertumbuhan dan pembangunan ekonomi. Al-Tsaman: Jurnal Ekonomi Dan Keuangan Islam, 3(1), 162–169.

Ain, Q. U., Yuan, X., Javaid, H. M., Zhao, J., & Xiang, L. (2021). Board gender diversity and dividend policy in Chinese listed firms. SAGE Open, 11(1), 1–19. https://doi.org/https://doi.org/10.1177/2158244021997807

Aji, I., & Andesto, R. (2022). The effect of gender diversity on governance structure on the sustainability disclosure level and its impact on the firm value (Empirical study of public companies listed on the Indonesia Stock Exchange for 2016-2020 period). Dinasti International Journal of Education Management and Social Science, 4(1), 83–95. https://doi.org/10.31933/dijemss.v4i1

Almeida, T. A., Morais, C. R. F. D., & Coelho, A. C. (2020). Gender diversity, governance and dividend policy in Brazil. Revista de Gestão, 27(2), 189–205. https://doi.org/10.1108/REGE-03-2019-0041

Anas, M., Jamal, M. T., Ahmad, M. M., Azmi, S. N., & Alam, M. F. (2022). The moderating role of board gender diversity in association of board characteristics and firm value. Corporate Governance and Sustainability Review, 6(2), 29–41. https://doi.org/https://doi.org/10.22495/cgsrv6i2p3

Anuar, E., Aziz, R. A., Mohamad, M., & Hashim, R. (2020). Does board gender diversity affects dividend payout? Evidence from a review of literature. Journal of ASIAN Behavioural Studies (JABs), 5(15), 19–34. https://doi.org/https://doi.org/10.21834/jabs.v5i16.350

Arvanitis, S. E., Varouchas, E. G., & Agiomirgianakis, G. M. (2022). Does board gender diversity really improve firm performance? Evidence from Greek listed firms. Journal of Risk and Financial Management, 15(7), 306. https://doi.org/10.3390/jrfm15070306

Chusanudin, A., & Munandar, A. (2022). Pengaruh pengetahuan keuangan terhadap niat investasi saham di indonesia dengan persepsi risiko sebagai variabel moderasi. Syntax Literate: Jurnal Ilmiah Indonesia, 7(4), 5051–5071. https://doi.org/https://doi.org/10.36418/syntax-literate.v7i4.6880

Dastin, & Candy. (2022). Analisis variabel makroekonomi yang dimoderasi Covid-19 terhadap tingkat pengembalian saham di indeks LQ-45. Jurnal Administrasi dan Manajemen, 12(3), 232–239. https://doi.org/https://doi.org/10.52643/jam.v12i3.2462

Dewi, L. G. K., Wiagustini, N. L. P., Rahyuda, H., & Sudana, I. P. (2023). Sustainability context and industry profile on the effect of gender diversity on firm value. Uncertain Supply Chain Management, 11(3), 1343–1358. https://doi.org/http://dx.doi.org/10.5267/j.uscm.2023.3.013

Dewi, N. P. S., Kepramareni, P., & Yuliastuti, I. A. N. (2020). Analisis faktor-faktor yang berpengaruh terhadap keputusan investasi pada perusahaan perbankan di bursa efek indonesia. Kumpulan Hasil Riset Mahasiswa Akuntansi (KHARISMA), 2(3), 240–252.

Duong, D.-K., Phan, T. T.-P., Pho, K.-H., & McAleer, M. (2020). Impact of board characteristics and state ownership on dividend policy in Vietnam. Advances in Decision Sciences, 24(4), 1–34.

Duppati, G., Rao, N. V., Matlani, N., Scrimgeour, F., & Patnaik, D. (2020). Gender diversity and firm performance: Evidence from India and Singapore. Applied Economics, 52(14), 1553–1565. https://doi.org/https://doi.org/10.1080/00036846.2019.1676872

Fauziah, E. I., Probohudono, A. N., & Setiawan, D. (2022). The effect of board gender diversity on dividend payments: Evidence from Indonesia. Australasian Accounting, Business and Finance Journal, 16(6), 3–22. https://doi.org/http://dx.doi.org/10.14453/aabfj.v16i6.02

García-Meca, E., López-Iturriaga, F. J., & Santana-Martín, D. J. (2022). Board gender diversity and dividend payout: The critical mass and the family ties effect. International Review of Financial Analysis, 79, 101973. https://doi.org/https://doi.org/10.1016/j.irfa.2021.101973

Gonçalves, T. C., Gaio, C., & Rodrigues, M. (2022). The impact of women power on firm value. Administrative Sciences, 12(3), 93. https://doi.org/10.3390/admsci12030093

Ghozali, I. (2021). Aplikasi Analisis Multivariate dengan Program IBM SPSS 26. Badan Penerbit Universitas Diponegoro.

Hamid, A., & Elika, L. (2022). The determinants of firm value in Indonesia Stock Exchange. Enrichment : Journal of Management, 12(5), 4518–4524. https://doi.org/10.35335/enrichment.v12i5.919

Handayani, J. D., & Panjaitan, Y. (2019). Board gender diversity and its impact on firm value and financial risk. MIX: Jurnal Ilmiah Manajemen, 9(3), 407–420. https://dx.doi.org/10.22441/mix.2019.v9i3.002

Hasan, R., Ahmad, A. U. F., & Sen, S. P. (2021). Governance structure affecting dividend policy in Malaysia: Theoretical perspectives. In Monetary Policy, Islamic Finance, and Islamic Corporate Governance: An International Overview (pp. 233–246). Emerald Publishing Limited. https://doi.org/https://doi.org/https://doi.org/10.1108/978-1-80043-786-920211013

Jayanti, R. D., Probohudono, A. N., & Endiramurti, S. R. (2023). Gender diversity among the board of commissioners and firm value in Indonesia. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(1), 84–93. https://doi.org/http://dx.doi.org/10.29040/ijebar.v7i1.8100

Kim, J., Yang, I., Yang, T., & Koveos, P. (2021). The impact of R&D intensity, financial constraints, and dividend payout policy on firm value. Finance Research Letters, 40, 101802. https://doi.org/https://doi.org/10.1016/j.frl.2020.101802

Kusumawati, A., & Mardiati, E. (2019). Analisis faktor-faktor yang mempengaruhi cash holding perusahaan jasa yang terdaftar di BEI (Studi kasus pada perusahaan jasa sektor infrasturktur, utilitas dan transportasi tahun 2015-2018). Jurnal Ilmiah Mahasiswa FEB, 8(1).

Lawrence, E. R., & Raithatha, M. (2023). Gender bias, board diversity, and firm value: Evidence from a natural experiment. Journal of Corporate Finance, 78, 102349. https://doi.org/10.1016/j.jcorpfin.2022.102349

Mohy-Ud-Din, K., Ahmad, R., Ishaq, H. M., & Akram, M. (2022). Moderating role of investment efficiency between board diversity and dividend policy: Evidence from Pakistan. IRASD Journal of Management, 4(2), 286–298. https://doi.org/https://doi.org/10.52131/jom.2022.0402.0079

Muhammad, M. I., Emmanuel, J., Bashir, M. I., & Ahmed, A. A. (2023). Board diversity and dividend policy of listed health care companies in Nigeria: The moderating effect of financial performance. Journal of Economics, Management and Trade, 29(7), 111–127. https://doi.org/10.9734/JEMT/2023/v29i71121

Mulchandani, K., Mulchandani, K., & Jasrotia, S. S. (2021). Does gender diversity on firm’s board affect dividend payouts? Evidence from India. Future Business Journal, 7(1), 1–11.

Mutia, A., & Nurhalis. (2019). Analisis faktor-faktor yang mempengaruhi dividend payout ratio (studi pada perusahaan non-keuangan yang terdaftar di bursa efek indonesia). Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, 4(4), 632–647.

Nguyen, T., Nguyen, A., Nguyen, M., & Truong, T. (2021). Is national governance quality a key moderator of the boardroom gender diversity–firm performance relationship? International evidence from a multi-hierarchical analysis. International Review of Economics & Finance, 73, 370–390. https://doi.org/https://doi.org/10.1016/j.iref.2021.01.013

Nharo, T., Moloi, T., & Hlobo, M. (2021). The relationship between board characteristics and dividend payment policies in the JSE top 40 listed companies. Journal of Academic Finance, 12(1), 30–52. https://doi.org/https://doi.org/10.59051/joaf.v12i1.439

Putri, M. O. D., & Wiksuana, I. G. B. (2021). The effect of liquidity and profitability on firm value mediated by dividend policy. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 204–212.

Putri, N. A. B., & Budyastuti, T. (2021). The effect of investment decisions, dividend policy and profitability on firm value in the Indonesian manufacturing companies. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(4), 47–53.

Qi, Q., Li, W., Liu, C., Huang, Y., & Hu, C. (2022). Continuous cash dividends, ownership structure and firm value: Evidence from Chinese a-share market. PLoS One, 17(3), 1–18. https://doi.org/https://doi.org/10.1371/journal.pone.0265177

Qureshi, M. A., Kirkerud, S., Theresa, K., & Ahsan, T. (2020). The impact of sustainability (ESG) disclosure and board diversity on firm value: The moderating role of industry sensitivity. Business Strategy and the Environment, 29(3), 1199–1214. https://doi.org/https://dx.doi.org/10.1002/bse.2427

Rachmi, I. F., & Heykal, M. (2020). The effect of liquidity, leverage, profitability, dividend payout ratio, and price earning ratio on firm value. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(7), 2967–2977.

Rahmiyanti, F., & Pratama, R. H. (2023). The effect of dividend payout ratio, leverage and management ownership on firm value. Kajian Akuntansi, 24(1), 105–115. https://doi.org/https://doi.org/10.29313/ka.v24i1.9078

Renaldi, J. Y., Pinem, D. B., & Permadhy, Y. T. (2020). Analysis of factors affecting the value of manufacturing industry companies in the Indonesian Stock Exchange (IDX). European Journal of Business and Management Research, 5(1), 1–8. http://dx.doi.org/08.0220/ejbmr.2020.5.1.230

Renaldo, N., & Murwaningsari, E. (2023). Does gender diversity moderate the determinant of future firm value. Review of Economics and Finance, 21, 680–689. https://doi.org/10.55365/1923.x2023.21.72

Seth, R., & Mahenthiran, S. (2022). Impact of dividend payouts and corporate social responsibility on firm value-evidence from India. Journal of Business Research, 146, 571–581. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.03.053

Sugiyono. (2021). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta.

Sugiyono. (2022). Metode Penelitian Kuantitatif. Alfabeta.

Supeni, N., Sari, M. I., & Mufida, A. (2022). Firm value: Keputusan pendanaan pada perusahaan perbankan. Jurnal Ilmiah Bisnis dan Ekonomi Asia, 16(2), 173–184 https://doi.org/10.32815/jibeka.v16i2.187.

Syaifullah, A. (2018). Analisis pengaruh financial leverage dan operating leverage terhadap stock return. Inovasi : Jurnal Ekonomi, Keuangan, dan Manajemen, 14(2), 53–62. https://doi.org/10.30872/jinv.v14i2.1928

Tafsir, M. (2023). The influence of tax planning, dividend policy and institutional ownership on firm value. SSRN. https://doi.org/https://dx.doi.org/10.2139/ssrn.4332604

Ullah, I., Fang, H., & Jebran, K. (2019). Do gender diversity and CEO gender enhance firm's value? Evidence from an emerging economy. Corporate Governance, 20(1), 44–66. https://doi.org/10.1108/CG-03-2019-0085

Utomo, M. N., Kaujan, Syahran, & Ulum, A. S. (2022). Peran gender diversity dewan perusahaan dalam menentukan kebijakan dividen di Indonesia. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(1), 86–93. https://doi.org/https://doi.org/10.32670/fairvalue.v5i1.1677

Vinjamury, R. S. (2023). Corporate board gender diversity and dividend decisions: Evidence from India. Contemporary Issues in Financial Economics: Evidence from Emerging Economies, 37, 1–13. https://doi.org/https://doi.org/10.1108/S0196-382120230000037001

Vivian, Candy, & Robin. (2022). Pentingkah perilaku wanita? Studi kebijakan dividen. Owner: Riset dan Jurnal Akuntansi, 6(2), 1852–1866. https://doi.org/https://doi.org/10.33395/owner.v6i2.812

Widarjono, A. (2018). Ekonometrika Pengantar dan Aplikasinya Disertai dengan Panduan EViews. UPP STIM YKPN Yogyakarta.

Widyakto, A., Prapti, L., & Triyani, D. (2022). Dividend payout ratio and factors affecting food and beverage companies on the IDX. Economics and Business Solutions Journal, 6(1), 12–22. http://dx.doi.org/10.26623/ebsj.v6i1.5043

Ye, D., Deng, J., Liu, Y., Szewczyk, S. H., & Chen, X. (2019). Does board gender diversity increase dividend payouts? Analysis of global evidence. Journal of Corporate Finance, 58, 1–26. https://doi.org/10.1016/j.jcorpfin.2019.04.002

Yusup, A. K., Widyarini, L. A., & Hongdiyanti, C. (2022). Does internal fund create trouble for firms? The effect of investment and dividend policy toward firm value. Petra International Journal of Business Studies (IJBS), 5(1), 1–9. https://doi.org/10.9744/ijbs.5.1.1-9




DOI: https://doi.org/10.24123/mabis.v23i2.799

Article Metrics

Abstract view : 0 times
PDF - 0 times

Refbacks

  • There are currently no refbacks.




Copyright (c) 2024 Candy Candy, Alex Alex, Dewi Khornida Marheni

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

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License. ISSN: 1412-3789. e-ISSN: 2477-1783.

Google ScholarGoogle ScholarGARUDA - Garba Rujukan Digital
DOAJ
ROADROADEBSCO
mabis statistics