THE INFLUENCE OF PRESENCE OF FEMALE IN BOARD OF DIRECTORS AND AUDIT COMMITTEE TOWARDS FINANCIAL PERFORMANCE: EVIDENCE FROM INDONESIAN PUBLIC COMPANIES

Abstract

This study aims to prove whether the presence of women in board of directors and audit committee affects   financial performance in Indonesian public companies. This  study focuses on Indonesian public company listed in Indonesia Stock Exchange (IDX)  with the  selected criteria using purposive sampling method. The 670 samples of companies are  obtained from  IPOT and financial statements listed in IDX from 2019 - 2021. The industries exempted is financial industry. Author uses multiple linear regression analysis with fixed effect model and ordinary least square (OLS) model for ROA and PER. Due to heteroskedasticity and autocorrelation problem, the regression needs to be standardized by Robust Standard Error. author finds that women on board of directors have a positive influence on both ROA and PER. The coefficient from women on board of directors to ROA shows positive sign and PER shows negative sign. However, author finds no significant influence of women in audit committee towards ROA and PER. The coefficient from women in audit committee towards ROA shows positive sign and PER shows negative sign. Even though some results are not significant, the positive and negative relationship of women on boards of directors along with ROA and PER may create improved outcome towards companies’ financial performance.