Do green credit and female board representation effect profitability in the banking sub-sector?

Ida Ayu Alit Dwi Maha Dewi; Gerianta Wirawan Yasa; Ayu Aryista Dewi

doi:10.21744/ijbem.v9n2.2474

Authors

Ida Ayu Alit Dwi Maha Dewi
dayualit775@gmail.com
Udayana University, Denpasar, Indonesia
Gerianta Wirawan Yasa Udayana University, Denpasar, Indonesia
Ayu Aryista Dewi Udayana University, Denpasar, Indonesia

Keywords:

green credit, female board representation, profitability

Abstract

This study aims to examine the effect of green credit and the proportion of women on the board of directors on profitability, measured by Return on Assets (ROA). The study focuses on banking sub-sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The sample was determined using a purposive sampling method, resulting in 18 firms with a total of 72 observations. The data were analyzed using panel data regression techniques with EViews 12. The results indicate that green credit in the previous period has a positive effect on current profitability, while the proportion of women on the board of directors does not have a significant effect on profitability. The findings imply that strengthening green credit should be considered a strategic approach to ensuring banking sustainability, while female representation on the board needs to be increased to provide a more substantial contribution to firm profitability.

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