Board Characteristics and Financial Performance: Evidence from Consumer Non-Cyclicals Firms in Indonesia (2020-2024)

Cindy Stevani  Tanujaya; Farida Titik Kristanti

doi:10.33395/owner.v10i4.3626

Authors

Cindy Stevani Tanujaya Accounting / Accounting Study Program / School of Economics and Business, Telkom University, Indonesia
Farida Titik Kristanti
✉ Corresponding author: faridatk@telkomuniversity.ac.id Accounting / Accounting Study Program / School of Economics and Business, Telkom University, Indonesia

DOI:

https://doi.org/10.33395/owner.v10i4.3626

Keywords:

Board Gender Diversity, Board Independence, Board Size, Board Meetings, Financial Performance

Abstract

A firm’s Financial performance serves as a primary metric for assessing its efficiency in leveraging assets to yield profits. Robust corporate governance is hypothesized to bolster this Financial performance by fostering superior oversight and facilitating strategic decision-making. This research investigates the impacts of board gender diversity, board independence, board size, and board meetings on the Financial performance of consumer non-cyclicals firms listed on the Indonesia Stock Exchange between 2020 and 2024, utilizing firm size as a control variable. The study gauges Financial performance via Return on Assets (ROA), employing a quantitative methodology grounded in multiple linear regression analysis. By utilizing purposive sampling, secondary data were extracted from annual reports, yielding a dataset of 27 firms totaling 135 observations, which were subsequently processed via EViews 13. The findings indicate that board gender diversity exerts a positive yet statistically insignificant influence on Financial performance. Conversely, both board independence and board size demonstrate positive and significant impacts, whereas board meetings show a negative and significant correlation with Financial performance. Furthermore, firm size is found to have a significant and positive effect on Financial performance. These findings indicate that independent oversight, board capacity, and firm size play important roles in enhancing financial performance, whereas gender diversity and meeting frequency alone are insufficient to significantly influence financial outcomes.

Downloads

Download data is not yet available.

References

Al Hosani, N. H., Nobanee, H., & Ellili, N. O. D. (2025). The impact of board gender diversity on financial performance of non-financial companies of the UAE: the moderating role of environmental, social, and governance (ESG) disclosure. Corporate Governance (Bingley), 25(8), 176–194. https://doi.org/10.1108/CG-06-2023-0228

Al-najjar, B., Salama, A., & Abed, A. (2025). Gender and cultural diversity on boards?: their impact on internationalisation. The International Journal of Human Resource Management, 36(13), 2305–2341. https://doi.org/10.1080/09585192.2025.2550765

Aldama, N. P., & Kristanti, F. T. (2022). Kinerja Keuangan , Komisaris Independen , Gender Diversity dan Financial Distress. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 11(02), 123–132. https://doi.org/10.24843/EEB.2022.v11.i02.p01

Ali, A. Ben, & Chouaibi, S. (2025). Does the value-added intellectual capital moderate the relationship between banking governance and financial performance?? A cross-banking analysis. Managerial Finance, 52(2), 250–265. https://doi.org/10.1108/MF-11-2024-0856

Amosh, H. Al, & Khatib, S. F. A. (2021). Ownership Structure and Environmental , Social and Governance Performance Disclosure?: The Moderating Role of The Board Independence. Journal of Business and Socio-Economic Development, 2(1), 49–66. https://doi.org/10.1108/JBSED-07-2021-0094

Andini, D., & Kusnandar, H. F. (2024). Analisis kinerja keuangan perusahaan di sektor kesehatan yang terdaftar di Bursa Efek Indonesia. Ekonomi & Bisnis, 17(2), 80–91. https://doi.org/10.32722/eb.v17i2.1404

Andoh, J. A. N., Abugri, B. A., & Anarfo, E. B. (2026). Board Characteristics and performance of listed firms in Ghana. Corporate Governance, 23(1), 43–71. https://doi.org/10.1108/CG-08-2020-0344

Anggreini, I. W., Arigawati, D., & Simbolon, M. B. (2025). Pengaruh Rasio Profitabilitas dan Likuiditas Terhadap Kinerja Keuangan Pada Perusahaan Sektor Kesehatan Yang Terdaftar di Bursa Efek Indonesia (BEI) Tahun 2021-2024. Jurnal Neraca Peradaban, 5(3), 656–671. https://doi.org/10.55182/jnp.v5i3.668

BloombergTechnoz. (n.d.). menjelang-awal-semester-2-2024-bei-sebut-35-perusahaan-antre-ipo @ www.bloombergtechnoz.com. https://www.bloombergtechnoz.com/detail-news/41542/menjelang-awal-semester-2-2024-bei-sebut-35-perusahaan-antre-ipo

Caroline, J., & Setijaningsih, H. T. (2025). Pengaruh mekanisme tata kelola perusahaan terhadap kinerja perusahaan ( Studi pada perusahaan sektor consumer non – cyclicals yang terdaftar di Bursa Efek Indonesia tahun 2022-. Jurnal Ekonomi Manajemen (JEKma), 29(12), 149–158.

Farooque, O. Al, Buachoom, W., & Sun, L. (2019). Board , audit committee , ownership and fi nancial performance – emerging trends from Thailand. Pacific Accounting Review, 32(1), 54–81. https://doi.org/10.1108/PAR-10-2018-0079

García-López, M.-J., Pacheco-Olivares, M. R., & Hamoudi, H. (2024). Board Gender Diversity and Firm Performance: An Analysis of the Causal Relationship in Spanish Listed Companies. Administrative Sciences, 14(1). https://doi.org/10.3390/admsci14010012

Haitsam, A., Jati, H., & Leon, F. M. (2025). The Effect of Board Diversity and Meeting Frequency on Financial Performance of Consumer Non-Cyclical Companies. Journal of Management Small and Medium Enterprises (SMEs), 18(2), 1451–1461. https://doi.org/10.35508/jom.v18i2.23758

Jati, H. L., & Arif, A. (2024). Pengaruh komite audit, dewan komisaris independen, dewan direksi, dan kepemilikan manajerial terhadap kinerja keuangan perusahaan. Jurnal Ekonomi Trisakti, 4(2), 1111–1122. https://doi.org/10.25105/jet.v4i2.21012

Junus, O., Nasih, M., Anshori, M., & Harymawan, I. (2022). Cogent Economics & Finance Politically connected independent board and firm performance Politically connected independent board and firm performance. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2069638

Khatib, S. F. A., & Nour, A.-N. I. (2021). The Impact of Corporate Governance on Firm Performance During The COVID-19 Pandemic: Evidence from Malaysia. Journal of Asian Finance, Economics and Business, 8(2), 943–952. https://doi.org/10.13106/jafeb.2021.vol8.no2.0943

Khayati, A., Sari, R. D. P., & Giovanni, A. (2022). Nilai Tambah Modal Manusia dan Keberlangsungan Bisnis Perusahaan Sektor Consumer Non-Cyclicals. Borobudur Management Review, 2(2), 169–189. https://doi.org/10.31603/bmar.v2i2.7377

Kristanti, F. T., & Herwany, A. (2017). Corporate Governance , Financial Ratios , Political Risk and Financial Distress?: A Survival Analysis. GATR Accounting and Finance Review, 2(2), 26–34. https://doi.org/10.35609/afr.2017.2.2(4)

Kurniasari, Y., & Yoga, I. (2025). Dampak WCM dan likuiditas terhadap profitabilitas perusahaan consumer non-cyclicals yang terdaftar di BEI tahun 2021-2023. Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah, 7(4), 1927–1944. https://doi.org/10.47467/alkharaj.v7i4.7282

Labibah, H. S., & Murwaningsari, E. (2025). Pengaruh Board Gender Diversity dan Kualitas Laba Terhadap Kinerja Keuangan Perbankan. Jurnal Ekonomi Trisakti, 5(2), 675–684. https://doi.org/10.25105/v5i2.23525

Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research, 3(1), 41–60. https://doi.org/10.1108/AJAR-06-2018-0008

Mardiyati, U. (2016). Pengaruh Frekuensi Rapat Dewan Direktur dan Jumlah Perempuan Terhadap Kinerja Perbankan. Ekuitas: Jurnal Ekonomi Dan Keuangan, 20(2), 172–187. https://doi.org/10.24034/j25485024.y2016.v20.i2.51

Marquez-cardenas, V., Gonzalez-ruiz, J. D., & Duque-, E. (2022). Board gender diversity and firm performance?: evidence from Latin America. Journal of Sustainable Finance & Investment, 12(3), 785–808. https://doi.org/10.1080/20430795.2021.2017256

Megawati, H. (2021). Good corporate governance dan kinerja keuangan (Studi empiris pada BUMN di Indonesia). Media Akuntansi Dan Perpajakan Indonesia, 2(2), 139–160.

Nasution, A. R. A., Diantimala, Y., & Yahya, M. R. (2024). The effect of corporate board and ownership structure on financial performance. Jurnal Akuntansi, 28(01), 166–183. https://doi.org/10.24912/ja.v28i1.1690

Naz, F., Humayun, M., Yasser, F., & Salman, V. (2025). Empowering performance: gender diversity, corporate social responsibility and sustainable outcomes. Corporate Governance (Bingley), January. https://doi.org/10.1108/CG-07-2023-0301

Nguyen, T. H. H., Elmagrhi, M. H., Ntim, C. G., & Wu, Y. (2021). Environmental performance, sustainability, governance and financial performance: Evidence from heavily polluting industries in China. Business Strategy and the Environment, 30(5), 2313–2331. https://doi.org/10.1002/bse.2748

Nugroho, S. D., & Jayanti, F. D. (2024). Pengaruh good corporate governance terhadap kinerja keuangan perusahaan manufaktur yang terdaftar di BEI. Dinamika Akuntansi Keuangan Dan Perbankan, 13(1), 9–22. https://doi.org/10.35315/dakp.v13i.9925

Pandey, A., & Sharma, P. C. (2025). Boardroom dynamics in Indian private banks: how nonexecutive and women directors affect financial performance. Corporate Governance (Bingley), 25(5), 1036–1054. https://doi.org/10.1108/CG-01-2024-0002

Ramadhani, I. P., Yuliusman, & Ridwan, M. (2025). Pengaruh Dewan Komisaris Independen dan Keberagaman Gender Dewan Direksi Terhadap Profitabilitas Dengan Ukuran Perusahaan Sebagai Variabel Moderasi. Jurnal Akuntansi Dan Keuangan Unja, 10(01), 83–101. https://doi.org/10.22437/jaku.v10i01.45730

Ramos, R. G., & Díaz, D. (2020). Board of directors structure and firm financial performance?: A qualitative comparative analysis. Long Range Planning, 54(1). https://doi.org/10.1016/j.lrp.2020.102017

Rezaee, Z. (2017). Corporate sustainability: Theoretical and integrated strategic imperative and pragmatic approach. The Journal of Business Inquiry, 16(1), 60–87. http:www.uvu.edu/woodbury/jbi/articles

Sunny, S. A., & Hoque, M. (2024). The impact of board characteristics on financial performance in an emerging economy: the moderating role of nomination and remuneration committee. European Journal of Management and Business Economics, October. https://doi.org/10.1108/EJMBE-06-2024-0195

Sutisna, N. (2020). Pengaruh Penerapan Tata Kelola Perusahaan Dan Tanggung Jawab Sosial Terhadap Kinerja Keuangan Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Periode 2014- 2018. AKUNTOTEKNOLOGI?: Jurnal Ilmiah Akuntansi Dan Teknologi, 12(1), 66–81. https://doi.org/10.31253/aktek.v12i1.373

Triana, T., & Pangestuti, I. R. D. (2021). Pengaruh Penerapan Corporate Governance Terhadap Peningkatan Kinerja Keuangan Perusahaan Dengan Firm Size dan Leverage Sebagai Variabel Kontrol (Studi Kasus pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2017 – 2019). Diponegoro Journal of Management, 10(3), 89–101.

Tudose, M. B., Rusu, V. D., & Avasilcai, S. (2022). Financial performance - determinants and interdependencies between measurement indicators. Business, Management and Economics Engineering, 20(1), 119–138. https://doi.org/10.3846/bmee.2022.16732

Wardoyo, D. U., Rahmadani, R., & Hanggoro, P. T. (2021). Good Corporate Governance Dalam Perspektif Teori Keagenan. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 1(1), 39–43. https://doi.org/10.56799/ekoma.v1i1.25

Yadav, P., & Prashar, A. (2023). Board gender diversity: implications for environment, social, and governance (ESG) performance of Indian firms. International Journal of Productivity and Performance Management, 72(9), 2654–2673. https://doi.org/10.1108/IJPPM-12-2021-0689

Yulfiswandi, & Susanti, O. (2024). Pengaruh corporate governance terhadap financial performance pada Bank Umum Syariah Indonesia. Jurnal Ekuilnomi, 6(3), 465–475. https://doi.org/10.36985/w1w9w427