Board Gender Diversity, Dividend Policy, and Market Valuation in Emerging Market Banking: Evidence from Indonesia

Abstract

Abstract.  This research investigates the impact of board gender Diversity, dividend policy, and firm value as well as the mediating effect of dividend policy at Indonesian Conventional Commercial Banks listed on Indonesian Stock Exchange (IDX) in 2022–2024. Through balanced panel data and Random Effect Model estimation, it was found that percentage of female commissioner and board director does not have a significant effect on dividend payout ratio and firms value (Tobin's Q), but dividend policy is significantly negative towards firm value, this indicates the Indonesian banking sector investors prefer retained earnings to be distributed in the form of capital reinforcement rather than dividends allocation for regulatory purpose. The Barons and Kenny mediation tests which further reveal that dividend policy does not act as a mediator between board gender diversity and firm value. This extends the growing literature on gender diversity and corporate governance in emerging economies, offering the insight that financial fundamentals are more powerful predictors of firm value than board gender composition for banks operating in a highly regulated environment.

Keywords : gender diversity, dividend policy, Tobin's Q, firm value, Indonesian banking