Abstract
The purpose of this paper is to determine the direct influence gender diversity on financial performance as well as through environmental performance as a mediating variable Design/methodology/approach : The data used ini this research are secondary data involving 110 companies listed on the Indonesia Stock Exchange for period 2012-2018. The data used in this study were analyzed using partial least square and carried out with help of software WarpPLS 6.0 Finding: The results show that the gender diversity on impact financial performance. Originality/value: The result also show partial mediation of environmental performance on impact gender diversity on financial performance.
Highlights
Financial performance is a major factor for the survival of the company
Outer model testing is an evaluation of reflective construct measurement models that are evaluated with convergent validity, discriminant validity and Convergent Validity reliability testing
Empirical test results indicate that gender diversity is needed in every company
Summary
Financial performance is a major factor for the survival of the company. This is because all company business processes require financial support and the results of business processes in the form of profit. Financial performance is used as a decision for investors. The financial performance of the company increases because of the roles and responsibilities of the board of directors, both men and women who have worked optimally. The executive board plays an important role in making investment decisions of the company. The CEO as a decision controller must prioritize rationality in investment decision making, in addition to the emotional and psychological factors of the CEO[1][2]
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