Ownership concentration and firm performance: Does female representation on the board matter?

I Gusti Agung Rai Kristina; I Wayan Suartana

doi:10.21744/ijbem.v9n2.2489

Authors

I Gusti Agung Rai Kristina
raikristina3@gmail.com
Udayana University, Denpasar, Indonesia
I Wayan Suartana Udayana University, Denpasar, Indonesia

Keywords:

Female Board Representation, Firm Performance, Firm Size, Leverage, Ownership Concentration, Return on Equity

Abstract

This study aims to examine the effect of ownership concentration on firm performance and to investigate whether the proportion of women on the board of directors moderates this relationship. The study focuses on property and real estate companies listed on the Indonesia Stock Exchange (IDX) during the period 2020–2024. Using a purposive sampling method, a total of 416 firm-year observations were obtained over the five-year research period. Data were analyzed using multiple linear regression and Moderated Regression Analysis (MRA) with the assistance of SPSS software. Firm performance was measured using Return on Equity (ROE), ownership concentration was proxied by the percentage of shares held by controlling shareholders, and the proportion of women on the board of directors was measured as the ratio of female directors to the total number of board members. Firm size and leverage were included as control variables. The results indicate that ownership concentration has a negative and significant effect on firm performance. This finding suggests that excessive dominance by controlling shareholders may encourage opportunistic behavior that reduces corporate efficiency and ultimately weakens firm performance.

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