The Influence of Executive and Independent Roles of Women Board Members on Bank Risk: Evidence from Indonesia

Abstract

This study examines the impact of the presence of women executives on bank risk, with a focus on banks in Indonesia. The research sample consists of 44 banks registered in Indonesia between 2013 and 2022. The analytical method employed is a fixed effect, incorporating year and bank effects. The research findings reveal that the presence of women executives and independent directors significantly reduces bank risk, as measured by indicators such as Non-Performing Loans (NPL) and Z-Score. The implications of these findings provide new insights into the contributions of women executives and independent directors to the stability and performance of banks in Indonesia. This study contributes to a deeper understanding of factors that can reduce bank risk and offers valuable perspectives for practitioners, policymakers, and researchers.


Keywords: women board member, bank risk, Indonesia

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