The effect of female on the board of directors and intellectual capital on the financial performance of companies in Indonesia

Ni Wayan Lia Apriani; Gayatri Gayatri

doi:10.21744/ijbem.v5n3.1926

Authors

Ni Wayan Lia Apriani
liaapriani4595@gmail.com
Faculty of Economics and Business, Udayana University, Bali, Indonesia
Gayatri Faculty of Economics and Business, Udayana University, Bali, Indonesia

Keywords:

board directors, female, gender, intellectual capital, PER, ROA

Abstract

The purpose of this study was to obtain empirical evidence of the effect of female gender on the board of directors and intellectual capital on the company's financial performance. This research was conducted on non-financial companies listed on the Indonesia Stock Exchange during the observation period, namely 2016-2020. Determination of the sample is done by purposive sampling technique. The number of samples obtained as many as 395 research samples. Methods of data collection using non-participant observation method. This study uses the data analysis technique used, namely Partial Least Square (PLS) analysis using SmartPLS software. The results of data analysis in this study indicate that female gender on the board of directors has a positive and significant effect on financial performance. Intellectual capital variable has a positive and significant effect on financial performance. This research provides additional insight and knowledge related to Upper Echelon Theory and Resources Based Theory on financial performance. This research can also provide information and understanding about the importance of female gender on the board of directors and intellectual capital on financial performance.

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