The Impact of Female CEOs on Bank Performance in Indonesia Fahira Sal Sabila, Sholatia Dalimunthe, Naufal Shadiq
Faculty of Economics State University of Jakarta, Indonesia
Abstract
The purpose of this study is to determine the influence of female Chief Executive Officers (CEOs) on the bank performance in a developing Southeast Asian capital market (Indonesia). The study uses unbalanced firm-level panel data for 40 banks listed on the Indonesia Stock Exchange (IDX) from 2010 to 2018. Return on assets and capital adequacy ratio were used to measure bank performance. The data were analyzed using panel data regression analysis, including a fixed effects model. The results show that female CEOs improve bank performance proxied by return on assets and reduce bank performance proxied by capital adequacy ratio. Female should be considered when appointing CEOs. Female CEOs carry new standpoints. This study backs to corporate governance studies by making CEO characteristic and examining its association with bank performance. Additionally, it highlights that emerging nations such as Indonesia have different economic, legal, social, and cultural environments than advanced nations, especially western nations.
Keywords: Bank performance, female CEO, Indonesian stock exchange
