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Gender Diversity In Top Management Teams And Its Effects On National Commercial Banks' Performance

Author

Listed:
  • Zaenal ABIDIN

    (Master of Management, Faculty of Economics and Business, Perbanas Institute, Indonezia)

  • Taufiq AKBAR

    (Accounting Department, Faculty of Economics and Business, Perbanas Institute, Indonezia)

  • Ahmad Halilintar SUDJA’I

    (Management Department, Faculty of Economics and Business, Perbanas Institute, Indonezia)

Abstract

This study intends to investigate how the performance of the national commercial banks BUKU 1 and BUKU 2 is impacted by the gender diversity of the Top Management Team. This study uses quantitative methods to determine the link between the investigated variables. The Partial Least Square (PLS) method, which uses SmartPLS software, is the methodology used in this study. Using a purposive sampling technique, 30 banks were included in the sample. The study's data came from the bank's annual report from 2018 to 2019. The findings of this study demonstrated that gender diversity could be considered in the selection of the top management of BUKU 1 and BUKU 2 banks since it significantly affects the Net Interest Margin. However, non-performing loans, BOPO ratio, and corporate profitability are not significantly impacted by gender diversity. At the same time, neither NPL nor NIM significantly affecting ROA. Nevertheless, BOPO ratio has a significant impact on ROA. This study contributes to enriching research of gender Top Management Team and its contribution on performance bank in Indonesia. This study will outline the connection between TMT gender diversity and business performance, allowing businesses to take that into account when assembling their top management teams (TMT).

Suggested Citation

  • Zaenal ABIDIN & Taufiq AKBAR & Ahmad Halilintar SUDJA’I, 2022. "Gender Diversity In Top Management Teams And Its Effects On National Commercial Banks' Performance," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 21(2), pages 3-12.
    • Handle: RePEc:pts:journl:y:2022:i:2:p:3-12
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    References listed on IDEAS

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    1. Elen Puspitasari & Bambang Sudiyatno & Nur Aini & Gladis Anindiansyah, 2021. "The Relationship Between Net Interest Margin and Return on Asset: Empirical Study of Conventional Banking in Indonesia," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, May.
    2. Rami Obeid & Mohammad Adeinat, 2017. "Determinants of Net Interest Margin: An Analytical Study on the Commercial Banks Operating in Jordan (2005-2015)," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 515-525.
    3. Fernando, Guy D. & Jain, Shalini Sarin & Tripathy, Arindam, 2020. "This cloud has a silver lining: Gender diversity, managerial ability, and firm performance," Journal of Business Research, Elsevier, vol. 117(C), pages 484-496.
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    More about this item

    Keywords

    Top Management Team; Banks' Performance; Gender Diversity; Bank Type in BUKU 1 & 2.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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