Do Women in Top Management Affect Firm Performance? Evidence from Indonesia

34 Pages Posted: 20 Dec 2010

See all articles by Salim Darmadi

Salim Darmadi

Indonesia Financial Services Authority (OJK)

Date Written: December 19, 2010


This paper investigates the relationship between gender diversity on management boards and financial performance of Indonesian listed companies. We conduct cross-sectional regression analysis based on a sample comprising 92.4 percent of public firms listed on the Indonesia Stock Exchange (IDX). We find that the representation of female top executives is negatively related to both accounting and market performance, suggesting that female representation is not associated with improved level of performance. From correlation analysis, our results also reveal that smaller firms, which tend to be family-controlled, are more likely to have higher proportion of female members on management boards. This implies that large firms are “tougher” for women in terms of opportunities to hold seats on the board.

Keywords: Corporate governance, gender diversity, female representation, financial performance, Indonesia

JEL Classification: G30, G34, J16

Suggested Citation

Darmadi, Salim, Do Women in Top Management Affect Firm Performance? Evidence from Indonesia (December 19, 2010). Available at SSRN: or

Salim Darmadi (Contact Author)

Indonesia Financial Services Authority (OJK) ( email )

Jalan M.H. Thamrin No. 2
Jakarta, Jakarta 10350

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