THE INFLUENCE OF FEMALE DIRECTOR ON THE PROBABILITY OF COMPANIES EXPERIENCING FINANCIAL DISTRESS
Keywords:
Female director, financial distress, board size, firm size, leverage
Abstract
This study aims to determine the effect of Female Director on the Probability of a Company Experiencing Financial Distress. Springate model is used to predict the probability of a company experiencing financial distress. This study compares the effect of female director on the probability of a company experiencing financial distress without control variables and using control variables. The control variables in this study are board size, firm size and leverage. The population in this study were manufacturing companies listed on the Indonesia Stock Exchange in the period 2013-2018. The samples in this study were 27 companies. The results of this study indicate that female directors have no significant effect on the probability of a company experiencing financial distress. By using control variables, it is shown that female directors do not significantly influence the probability of a company experiencing financial distress with the control variables such as board size, firm size, and leverage.
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References
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Sholikhah, P.N. (2018). Analysis of the influence of CEO Gender, CEO Quality, Generation Family Firm on Financial Distress in Family Companies. Thesis. Management. Finance. Islamic University of Indonesia. Yogyakarta.
Sinarti & Sembiring (2015). Bankruptcy Prediction Analysis of Listed Manufacturing Companies in Indonesia Stock Exchange. International Journal of Economics and Financial Issues, 354-359
Sujoko and Soebiantoro, U. (2007) Influence of Share Ownership Structure, Leverage, Internal Factors and External Factors on Firm Value. Journal of Management and Entrepreneurship. 9 (1) .
Sumiarni, E. (2005). the position of husband and wife in marriage law (assessment of gender equality through mating agreement. Yogyakart a: Jalasutra.
Tanujaya, L.R., Samuel, H., Devie. (2017). Analysis of the Influence of Corporate Governance, CSR, and Financial Distress on Firm Value in Companies Listed on the IDX 2011-2015. Petra Business & Management Review, 3 (1).
Wardhani, R. (2007). Corporate Governance mechanisms in companies experiencing financial problems. Indonesian Journal of Accounting and Finance. 4 (1), 95-114.
Zahra, S., Pearce, A. (1989). Board of directors & corporate financial performance: a review & integrative model. Journal of Management. 15 (2), 291-334.
Armas, S. (2016). The Influence of Gender Diversity, Directors' Remuneration and Ownership Structure on the Performance of Companies Listed on the IDX for the 2011-2013 Period. Lampung University.
Bodroastuti, T. (2009). The Effect of Corporate Governance Structure on Financial Distress. Journal of Accounting Research, Management, Economics. 1 (1), 87-105.
Carolina (2017). Advanced Financial Accounting (Indonesian Perspective) Advanced Financial Accounting. Salemba Empat
Cinantya, I.G., & Merkusiwati, N.K. (2015). The Influence of Corporate Governance, Financial Indicators and Company Size on Financial Distress. E-Journal of Accounting Universias Udayana, 897-915.
Faras, NJ (1995). Leadership of women leaders in women's organizations. Educational journal. 80.
Ferbienti, F. (2017). Effect of the Structure of the Board of Commissioners, Institutional Ownership and Characteristics of the Audit Committee on Financial Distress. Thesis. Faculty of Economics and Business. Lampung University. Bandar Lampung
Gales, L.M., & Kesner, I.F. (1994). An analysis of the board of director size & composition in bankrupt organizations. Journal of Business Research, 30 (3), 271-282
Gamayumi (2011). Analysis of the Accuracy of Altman's Model as a Tool to Predict Bankruptcy. (Empirical Study on Manufacturing Companies Listed on the Indonesian Stock Exchange). Journal of Accounting and Finance. Faculty of Economics, University of Lampung.
Goodstein, J., Gautam, K., Boeker, W. (1994). The effect of board size and diversity on strategic change. Strategic Management Journal. 15, 241-250 ..
Hanifah, O.E. (2013). The Effect of Corporate Governance Structure and Financial Indicators on Financial Distress Conditions (Study of manufacturing companies listed on the Indonesia Stock Exchange in 2008-2010). Diponegoro University.
Hatane, E and Hamdani, Y. (2017). Effect of the Board of Directors on Firm Value through Firm Performance as an Intervening Variable. Business Accounting Review, 5 (1), 121-132.
Jiming, Li & Wei, D. (2012). An Empirical Study on the Corporate Financial Distress Prediction Based on Logistic Model Evidence from China's Manufacturing Industry. International Journal of Digital Content Technology. 5 (6)
Cashmere. (2010). Introduction to Financial Management. Jakarta: Kencana Penata Media Group.
Khakim, A. (2014). Basics of Indonesian Manpower Law.
National Committee on Governance Policy. (2006). General Guidelines for Indonesian Good Corporate Governance.
Kristian, M. (2017) The effect of the number of boards of directors and shareholder equity to total asset ratio on financial distress. Journal of Economics, 22 (3), 351-365
Meizaroh and Lucyanda, J. (2011). The Influence of Corporate Governance and Ownership Concentration on Enterprise Risk Management Disclosure. Accounting National Symposium. Bakrie University Jakarta: Aceh, 1-30
Ningrum, A & Hatane, S. (2017). The influence of Corporate Governance on financial distress. Journal of business accounting, 5 (1), 241-252.
Nora, A.R. (2016). The Influence of Financial Indicators, Company Size and Institutional Ownership on Financial Distress. Perbanas School of Economics' Scientific Articles.
Nuryaman, (2008). The influence of ownership concentration, firm size and corporate governance mechanisms on earnings management, Pontianak: Accounting National Symposium.
Pulungan, KPA (2017). The effect of liquidity and leverage on financial distress in ceramics, porcelain and glass sub-sector companies listed on the Indonesian stock exchange. Journal of Financial. 3 (2).
Roika, R., Salim, U., Sumiati, S. (2019). The Effect of Diversity of the Board of Directors on the Company's Financial Performance. Iqtishoduna. 15 (2). 115-128.
Sari, AA Pt. Agung Mirah Purnama and Ardiana, PA (2014). Effect of Board Size on Firm Value. E-Journal of Accounting at Udayana University. 177-191.
Sartono, A. (2010). Financial Management Theory and Applications. 4th Edition Yogyakarta: BPFE
Sastriana, D and Fuad (2013). The Influence of Corporate Governance and Firm Size on Companies with Financial Distress (Financial Distress. E-Journal of Accounting, 1 (7), 93-106
Sekaredi, Sawitri (2011). The Effect of Corporate Governance on CorporatePerformance Financial. Diponegoro University, Semarang.
Shanthana, L.S. & Basana, S.R. (2020). pengaruh firm size terhadap leverage pada perusahaan manufaktur publik Indonesia periode 2013-2017. International Journal of Financial and Investment Studies (IJFIS), 1(1), 53-66. https://doi.org/10.9744/ijfis.1.1.53-66
Sholikhah, P.N. (2018). Analysis of the influence of CEO Gender, CEO Quality, Generation Family Firm on Financial Distress in Family Companies. Thesis. Management. Finance. Islamic University of Indonesia. Yogyakarta.
Sinarti & Sembiring (2015). Bankruptcy Prediction Analysis of Listed Manufacturing Companies in Indonesia Stock Exchange. International Journal of Economics and Financial Issues, 354-359
Sujoko and Soebiantoro, U. (2007) Influence of Share Ownership Structure, Leverage, Internal Factors and External Factors on Firm Value. Journal of Management and Entrepreneurship. 9 (1) .
Sumiarni, E. (2005). the position of husband and wife in marriage law (assessment of gender equality through mating agreement. Yogyakart a: Jalasutra.
Tanujaya, L.R., Samuel, H., Devie. (2017). Analysis of the Influence of Corporate Governance, CSR, and Financial Distress on Firm Value in Companies Listed on the IDX 2011-2015. Petra Business & Management Review, 3 (1).
Wardhani, R. (2007). Corporate Governance mechanisms in companies experiencing financial problems. Indonesian Journal of Accounting and Finance. 4 (1), 95-114.
Zahra, S., Pearce, A. (1989). Board of directors & corporate financial performance: a review & integrative model. Journal of Management. 15 (2), 291-334.
Published
2021-06-07
How to Cite
Koerniawan, S. A., & Malelak, M. I. (2021). THE INFLUENCE OF FEMALE DIRECTOR ON THE PROBABILITY OF COMPANIES EXPERIENCING FINANCIAL DISTRESS. International Journal of Financial and Investment Studies (IJFIS), 1(2), 101-108. https://doi.org/10.9744/ijfis.1.2.101-108
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