Abstract
Study of female directors, financial performance and firm value has been widely carried out by previous researchers, but the results have not been consistent, namely several have a positive effect and some have a negative effect. Thus, we are interested in re-examining this topic. We aim to examine and analyze the effect of female directors and financial performance on firm value. And the control variables in this study are firm size, leverage and age. The population of this study are mining sector companies that are listed on the Indonesia Stock Exchange and have complete data on the variables studied for the 2017-2019 period totaling 31 companies with 93 years of observation and all researched (census). The study is secondary data, for women director data derived from annual reports obtained through idx.co.id. Meanwhile, financial data such as ROA, Tobin'Q, firm size, leverage and age were obtained from Thomson & Reuters. The data analysis technique in this study is path analysis used Stata 14. The results showed that female directors had a positive effect on firm value, while financial performance had a negative effect on firm value. Keywords: Agency Problem, Female Directors, Financial Performance DOI: 10.7176/RJFA/12-16-07 Publication date: August 31 st 2021
Highlights
IntroductionAccording to Modern Corporation Theory (Berle and Means, 1932), companies must separate the owners (shareholders) and managers (management)
According to Modern Corporation Theory (Berle and Means, 1932), companies must separate the owners and managers
Based on the description above, the formulation of the problem in this study is: Do women directors and financial performance affect firm value in mining sector companies listed on the Indonesia Stock Exchange
Summary
According to Modern Corporation Theory (Berle and Means, 1932), companies must separate the owners (shareholders) and managers (management). This means that the company must separate the functions between management and shareholders. The separation of functions between owners and management means that there is a specialization of functions. With the specialization of functions, the company must make a separation between management activities and control activities. This is done so that there is no overlap between management and control activities. With the separation of functions, it is expected that each function can be responsible for its duties and obligations. It is expected that the company can operate more effectively and efficiently which in the end the company can achieve its goals optimally
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
