Corporate Sustainability Performance: The Role of the Gender Diversity of the Board and Enterprise Risk Management

Penulis

  • Rimi Gusliana Mais SEKOLAH TINGGI ILMU EKONOMI INDONESIA
  • Lim Hendra Sekolah Tinggi Ilmu Ekonomi Indonesia, Jakarta, Indonesia
  • Siti Almurni Sekolah Tinggi Ilmu Ekonomi Indonesia, Jakarta, Indonesia
  • Fanisyah Maliki Sekolah Tinggi Ilmu Ekonomi Indonesia, Jakarta, Indonesia

DOI:

https://doi.org/10.21009/Wahana.19.014

Kata Kunci:

Board Gender Diversity, Sustainability Performance, ERM

Abstrak

The research objective is to investigate the impact of board gender diversity on corporate sustainability performance, with enterprise risk management (ERM) as a moderating factor within health sector companies listed on the Indonesia Stock Exchange. The study adopts a secondary quantitative research approach and utilizes panel data linear regression analysis conducted through Econometric Views (E-Views). The study population consists of health sector firms listed on the Indonesia Stock Exchange from 2019 to 2022. The sample selection method used is purposive sampling, resulting in a sample size of 10 companies for the study. Secondary data is collected through the documentation method from the Indonesia Stock Exchange and the official websites of the selected companies. The findings reveal a negative relationship between board gender diversity and corporate sustainability performance, with a negative coefficient indicating that higher gender diversity among board members correlates with lower sustainability performance. Additionally, the study demonstrates that ERM strengthens the association between gender diversity and sustainability performance. Companies proficient in ERM implementation are better positioned to leverage the positive effects of gender diversity on sustainability performance. Understanding this interplay can assist organizations in making informed decisions regarding gender diversity policies and enterprise risk management strategies.

Referensi

Al-Shaer, H., & Zaman, M. (2016). Board gender diversity and sustainability reporting quality. Journal of Contemporary Accounting & Economics, 12(3), 210–222. https://doi.org/10.1016/j.jcae.2016.09.001
Arayssi, M., Fakih, A., & Kassem, M. (2019). Government and Financial Institutional Determinants of Development in MENA Countries. Emerging Markets Finance and Trade, 55(11), 2473–2496. https://doi.org/10.1080/1540496X.2018.1507907
Buallay, A., Hamdan, R., Barone, E., & Hamdan, A. (2022). Increasing female participation on boards: Effects on sustainability reporting. International Journal of Finance & Economics, 27(1), 111–124. https://doi.org/10.1002/ijfe.2141
Channuntapipat, C. (2021). Can sustainability report assurance be a collaborative process and practice beyond the ritual of verification? Business Strategy and the Environment, 30(2), 775–786. https://doi.org/10.1002/bse.2653
Cox, T. H., & Blake, S. (1991). Managing cultural diversity: implications for organizational competitiveness. Academy of Management Perspectives, 5(3), 45–56. https://doi.org/10.5465/ame.1991.4274465
Ely, R. J., & Thomas, D. A. (2001). Cultural Diversity at Work: The Effects of Diversity Perspectives on Work Group Processes and Outcomes. Administrative Science Quarterly, 46(2), 229–273. https://doi.org/10.2307/2667087
Fernandez‐Feijoo, B., Romero, S., & Ruiz‐Blanco, S. (2014). Women on Boards: Do They Affect Sustainability Reporting? Corporate Social Responsibility and Environmental Management, 21(6), 351–364. https://doi.org/10.1002/csr.1329
Girón, A., Kazemikhasragh, A., Cicchiello, A. F., & Monferrá, S. (2022). The Impact of Board Gender Diversity on Sustainability Reporting and External Assurance: Evidence from Lower-Middle-Income Countries in Asia and Africa. Journal of Economic Issues, 56(1), 209–224. https://doi.org/10.1080/00213624.2022.2020586
Jia, J. (2019). Does risk management committee gender diversity matter? A financial distress perspective. Managerial Auditing Journal, 34(8), 1050–1072. https://doi.org/10.1108/MAJ-05-2018-1874
Kalev, A., Dobbin, F., & Kelly, E. (2006). Best Practices or Best Guesses? Assessing the Efficacy of Corporate Affirmative Action and Diversity Policies. American Sociological Review, 71(4), 589–617. https://doi.org/10.1177/000312240607100404
Luke, T. W. (2013). Corporate Social Responsibility: An Uneasy Merger of Sustainability and Development. Sustainable Development, 21(2), 83–91. https://doi.org/10.1002/sd.1558
Malik, M. F., Zaman, M., & Buckby, S. (2020). Enterprise risk management and firm performance: Role of the risk committee. Journal of Contemporary Accounting & Economics, 16(1), 100178. https://doi.org/10.1016/j.jcae.2019.100178
Miles, K. (2011). Embedding gender in sustainability reports. Sustainability Accounting, Management and Policy Journal, 2(1), 139–146. https://doi.org/10.1108/20408021111162164
Napitupulu, S., Primiana, I., Nidar, S. R., Effendy, N., & Puspitasari, D. M. (2020). The Effect of Management Capabilities in Implementing Good Corporate Governance: A Study from Indonesia Banking Sector. The Journal of Asian Finance, Economics and Business, 7(1), 159–165. https://doi.org/10.13106/jafeb.2020.vol7.no1.159
Oyewo, B. (2022). Enterprise risk management and sustainability of banks performance. Journal of Accounting in Emerging Economies, 12(2), 318–344. https://doi.org/10.1108/JAEE-10-2020-0278
Rosati, F., & Faria, L. G. D. (2019). Addressing the SDGs in sustainability reports: The relationship with institutional factors. Journal of Cleaner Production, 215, 1312–1326. https://doi.org/10.1016/j.jclepro.2018.12.107
Shad, M. K., Lai, F.-W., Fatt, C. L., Klemeš, J. J., & Bokhari, A. (2019). Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. Journal of Cleaner Production, 208, 415–425. https://doi.org/10.1016/j.jclepro.2018.10.120
Singhania, S., Singh, J., Aggrawal, D., & Rana, S. (2023). Board gender diversity and sustainability reporting quality: a generalized ordered logit approach. Kybernetes. https://doi.org/10.1108/K-07-2022-0963
Spallini, S., Milone, V., Nisio, A., & Romanazzi, P. (2021). The Dimension of Sustainability: A Comparative Analysis of Broadness of Information in Italian Companies. Sustainability, 13(3), 1457. https://doi.org/10.3390/su13031457
Tamimi, N., & Sebastianelli, R. (2017). Transparency among S&P 500 companies: an analysis of ESG disclosure scores. Management Decision, 55(8), 1660–1680. https://doi.org/10.1108/MD-01-2017-0018
Thoomaszen, S. P., & Hidayat, W. (2020). Keberagaman Gender Dewan Komisaris dan Direksi terhadap Kinerja Perusahaan. E-Jurnal Akuntansi, 30(8), 2040. https://doi.org/10.24843/EJA.2020.v30.i08.p11
Wang, M.-C. (2017). The Relationship between Firm Characteristics and the Disclosure of Sustainability Reporting. Sustainability, 9(4), 624. https://doi.org/10.3390/su9040624
Zampone, G., Nicolò, G., Sannino, G., & De Iorio, S. (2024). Gender diversity and SDG disclosure: the mediating role of the sustainability committee. Journal of Applied Accounting Research, 25(1), 171–193. https://doi.org/10.1108/JAAR-06-2022-0151

Unduhan

Diterbitkan

2024-07-01

Cara Mengutip

Mais, R. G., Hendra, L., Almurni, S., & Maliki, F. (2024). Corporate Sustainability Performance: The Role of the Gender Diversity of the Board and Enterprise Risk Management. Jurnal Ilmiah Wahana Akuntansi, 19(1), 51–66. https://doi.org/10.21009/Wahana.19.014

Terbitan

Vol 19 No 1 (2024): Jurnal Ilmiah Wahana Akuntansi

Bagian

Articles

Lisensi

Creative Commons License
Jurnal Ilmiah Wahana Akuntansi is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Articles in Jurnal Ilmiah Wahana Akuntansi are Open Access articles published under the Creative Commons CC BY-NC-SA License.  This license permits use, distribution and reproduction in any medium for non-commercial purposes only, provided the original work and source is properly cited. Any derivative of the original must be distributed under the same license as the original.