IDEAS home Printed from https://ideas.repec.org/a/pts/journl/y2022i2p3-12.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://economic.upit.ro/RePEc/pdf/2022_2_1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    2. Zarei, Mohammad & Supphellen, Magne & Bagozzi, Richard P., 2022. "Servant leadership in marketing: A critical review and a model of creativity-effects," Journal of Business Research, Elsevier, vol. 153(C), pages 172-184.
    3. Fernando, Guy D. & Schneible, Richard A. & Zhang, Wei, 2024. "Institutional ownership and women in the top management team," Journal of Business Research, Elsevier, vol. 170(C).
    4. Javed, Muzhar & Wang, Fangjun & Usman, Muhammad & Ali Gull, Ammar & Uz Zaman, Qamar, 2023. "Female CEOs and green innovation," Journal of Business Research, Elsevier, vol. 157(C).
    5. Samuel Baixauli-Soler, J. & Belda-Ruiz, María & Sánchez-Marín, Gregorio, 2021. "Socioemotional wealth and financial decisions in private family SMEs," Journal of Business Research, Elsevier, vol. 123(C), pages 657-668.
    6. Pan, Xiaozhen & Tang, Hongfei, 2021. "Are both managerial morality and talent important to firm performance? Evidence from Chinese public firms," International Review of Financial Analysis, Elsevier, vol. 73(C).
    7. Jain, Shalini Sarin & Fernando, Guy D. & Tripathy, Arindam & Bhatia, Sandhya, 2021. "Closing the gender gap in top management teams: An examination of diversity and compensation parity in family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 12(4).
    8. Lee, Sang Mook & Bazel-Shoham, Ofra & Tarba, Shlomo Y. & Shoham, Amir, 2022. "The effect of economic freedom on board diversity," Journal of Business Research, Elsevier, vol. 149(C), pages 833-849.
    9. Raheel Mumtaz & Muhammad Farooq Rehan & Quaisar Ijaz Khan & Rubab Zaidi, 2021. "Board Gender Diversity, Firm Performance and Risk-Taking: The Case of Non-Financial Firms of Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 3(3), pages 354-367, December.
    10. Olayinka Oyekola & Olapeju C. Ogunmokun & Martha A. Omolo & Samuel Odewunmi, 2023. "Gender, Legal Origin, and Accounting Disclosure: Evidence from More Than 140,000 Firms," Discussion Papers 2313, University of Exeter, Department of Economics.
    11. Bauweraerts, Jonathan & Arzubiaga, Unai & Diaz-Moriana, Vanessa, 2022. "Going greener, performing better? The case of private family firms," Research in International Business and Finance, Elsevier, vol. 63(C).
    12. Mehta, Nikhil & Mehta, Anju & Hassan, Yusuf & Buttner, Holly & RoyChowdhury, Sanchita, 2021. "Choices in CDO appointment and firm performance: Moving towards a Stakeholder-based approach," Journal of Business Research, Elsevier, vol. 134(C), pages 233-251.
    13. Amir Allam & Tantawy Moussa & Mahmoud Elmarzouky, 2024. "Examining the relationship between CEO power and modern slavery disclosures: The moderating role of board gender diversity in UK companies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8067-8085, December.
    14. BingHong Lin & BingXiang Li, 2024. "Impact of Managerial Ability on the Quality of Accounting Information Disclosure: Empirical Evidence From China," SAGE Open, , vol. 14(3), pages 21582440241, September.
    15. Feng, Cong & Xiang, Kexin, 2023. "Structural power of female executives and retailer profitability: A contingent resource-based perspective," Journal of Business Research, Elsevier, vol. 168(C).
    16. Rami Obeid & Bassam Awad, 2018. "Interaction of Monetary and Macro-prudential Policies: The Case of Jordan- Credit Gap as an Example," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(1), pages 99-111.
    17. Shadrack Muthami Mwatu, 2022. "Institutions and export performance: firm level evidence from Kenya," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 487-506, December.
    18. Baghdadi, Ghasan A. & Safiullah, Md & Heyden, Mariano L.M., 2023. "Do gender diverse boards enhance managerial ability?," Journal of Corporate Finance, Elsevier, vol. 79(C).
    19. Suha Alawi, 2024. "The Role of Corporate Social Responsibility, Ownership Structure, and Gender Diversity in Firm Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 14(2), pages 97-110, March.
    20. Allison, Lee & Liu, Yu & Murtinu, Samuele & Wei, Zuobao, 2023. "Gender and firm performance around the world: The roles of finance, technology and labor," Journal of Business Research, Elsevier, vol. 154(C).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pts:journl:y:2022:i:2:p:3-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alina Hagiu (email available below). General contact details of provider: https://edirc.repec.org/data/fepitro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.