State-Owned Enterprise Performance: Characteristics Of Good Female Directors In Indonesia
DOI:
https://doi.org/10.32486/aksi.v10i1.836Keywords:
Female directors, political connections, economic or business educational background, level of education ,BUMN performanceAbstract
This study empirically examines the influence of female directors’ characteristics, political connections, educational background in economics or business, and education level on the performance of Indonesian State-Owned Enterprises (BUMN). These factors are crucial as they affect strategic quality impacting BUMN performance. Regulation PER-8/MBU/08/2020 encourages increasing female representation on boards. The study measures BUMN performance comprehensively across financial, administrative, and operational dimensions, reflecting their dual role as public servants and state profit generators. Using a quantitative approach, the sample includes all BUMNs with female directors from 2018 to 2023. Data were sourced from IDX, company websites, annual and financial reports, and the Ministry of BUMN’s documentation (PPID). Data analysis employed SPSS version 25. Findings reveal political connections significantly influence BUMN performance, while female directors’ characteristics, education background, and education level show no significant effect, likely due to limited strategic decision-making roles for women. Directors with political ties can offer strategic advantages but require balanced transparency and accountability.The study’s novelty lies in its comprehensive integration of female director traits, political connections, and education with multi-dimensional BUMN performance measures. It also evaluates BUMN’s dual function amid board restructuring policies, providing updated empirical insights on the impact of increasing women on BUMN boards
References
Abatecola, G., & Cristofaro, M. (2018). Hambrick and Mason's “Upper Echelons Theory”: evolution and open avenues. Journal of Management History.
Access, O., & Budiharjo, R. (2020). Effect of Environmental Performance, Good Corporate Governance and Leverage on Firm Value. American Journal of Humanities and Social Sciences Research (AJHSSR), 4(8), 455–464.
Akbar, C. (2021). Sri Mulyani Says 68 Percent of State-Owned Enterprises Receiving State Capital Are Threatened with Bankruptcy. https://Bisnis.Tempo.Co/Read/1539954/Sri-Mulyani-Sebut-68-Persen-Bumn-Penerima-Modal-Negara-Terancam-Bangkrut.
Altuwaijri, BM Kalyanaraman, L. (2020). CEO education-performance relationship: Evidence from Saudi Arabia. Journal of Asian Finance, Economics and Business, 7(8), 259-268.
Arbar, TF (2020). Sri Mulyani's Criticism: 2 of 7 State-Owned Companies That Were Making a Loss Start to Make a Profit. Retrieved from: Https://Www.Cnbcindonesia.Com/Market/202 00627142307-17-168484/Sri_mulyani-2-From-7-Bumn-Tekor-Mulai-Cetak_laba.
Astami, EW, Tower, G., Rusmin, R. and, & Neilson, J. (2010). The effect of privatization on performance of state‐owned‐enterprises in Indonesia. Asian Review of Accounting, 18(1), 5-19. doi:10.1108/13217341011045971.
Bennouri, M. (2018). Female board directorship and firm performance: What really matters? Journal of Banking & Finance, 88, 267-291.
Bertrand, M., Kramarz, F., Schoar, A., & Thesmar, D. (2018). The cost of political connections. Review of Finance, 22(3), 849-876.
Bukhori, I., & Raharja. (2012). The Influence of Good Corporate Governance and Company Size on Company Performance (Empirical study on companies listed on the IDX 2010). Diponegoro Journal Of Accounting, 1(1), 263–274.
Campbell, K., & Vera, A. M. (2008). "Gender Diversity in the Boardroom and Firm Financial Performance". In Journal of Business Ethics, 83(3), 43.
Chancharat, S., Detthamrong, U., & Chancarat, N. (2019). Board structure, political connections and firm performance: Evidence from Thailand.. International. Journal of Business and Society, 20(3), 1096-1111.
Cheng, L.T., et al. (2010). Management demo_graphy and corporate performance: Evidence from China. International Business Review, 19(3), 261-275.
Chong, L., Ong, H.B., & Tan, S.H. (2018). Corporate risk-taking and performance in Malaysia: the effect of board composition, political connections and sustainability practices. Corporate Governance. The International Journal of Business in Society.
Conyon, M. J. He, L. (2017). Firm performance and boardroom gender diversity: A quantile regression approach. Journal of Business Research, 79, 198-211.
Dewantari, NLS, Cipta, W., & Susila, GPAJ (2020). The Effect of Company Size and Leverage and Profitability on Company Value in Food and Beverages Companies in Bei. Prospek: Journal of Management and Business, 1(2), 74. https://doi.org/10.23887/pjmb.v1i2.23157
Edita, R., & Cahyanto, YAD (2021). The Influence of Female Directors, Governance, and Company Characteristics on Earnings Management. Tsm Accounting E-Journal, 1(2), 257–272.
Elsharkawy, M., Paterson, A.S., & Sherif, M. (2018). Now you see me: diversity, CEO education, and bank performance in the UK. Investment Management and Financial Innovations.
Fan, Y., et al. (2019). Women on boards and bank earnings management: From zero to hero. Journal of Banking & Finance, 107, 105607.
Ghozali, I. (2018). Multivariate Analysis Application with IBM SPSS 25 Program.
Hambrick, D. C. Mason, P. A. (1984). (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193-206.
Harjoto, MA, & Rossi, F. (2019). Religiosity, female directors, and corporate social responsibility for Italian listed companies. Journal of Business Research, 95, 338-346.
Harymawan, I., Nasih, M., Suhardianto, N., & Shauki, E. (2020). How does the presidential election period affect the performance of the state-owned enterprises in Indonesia? Cogent Business & Management, 7(1), 1750330.
Henny Wirianata, V. (2021). The Influence of Intellectual Capital and Leverage on Financial Performance with Firm Size Moderation. Journal of Economics, 26(3), 379. https://doi.org/10.24912/je.v26i3.797
Idris, M. (2019). List of 7 BUMNs That Still Make Losses Despite PMN Injections. Retrieved from: Https://Money.Kompas.Com/Read/2019/12/21 /142657926/Daftar-7-Bumn-Yang-Tetap-Rugi_meski- Sudah-Disuntik-Pmn?Page=all.
Jurnali, T., & Melissa, M. (2022). The Influence of Political Connections on the Relationship between Female Directors and Social Responsibility Disclosure. Jesya, 5(2), 2736–2743. https://doi.org/10.36778/jesya.v5i2.882
King, T., Srivastav, A., & Williams, J. (2016). What's in an education? Implications of CEO education for bank performance. Journal of Corporate Finance, 37, 287-308.
Kong, V. X., & Zhang, J. (2010). The Effect of Managerial Education and Firm-Ownership Structure: Empirical Evidence from Chinese Listed Firms. The Chinese Economy, 43(6), 34–53. https://Doi.Org/10.2753/1097-1475430604.
Lei, Q., & Li, J. (2023). Can differences in the background characteristics of the chairperson–CEO vertical dyad reduce management agency costs?—A perspective Based on the internal configuration of the top management team. Journal: China Journal of Accounting Researchttps://Doi.Org/10.1016/j.Cjar.2023.100293.
Lim, K.P., et al. (2019). Women directors and performance: evidence from Malaysia. Equality, Diversity and Inclusion. An International Journal.
Mahrofi, Z. (2020). Erick Thohir will increase the composition of women in the ranks of BUMN directors. Retrieved from: Https://Www.Antaranews.Com/Berita/179688 5/Erick-Thohir-Akan-Perbesar-Komposisi_perempuan-Di-Jajaran-Direksi-Bumn.
McGuinness, PB, et al. (2017). CSR performance in China: The role of board gender and foreign ownership. Journal of Corporate Finance, 42, 7299.
Mun, S., Han, S.H., & Seo, D. (2020). The impact of CEO educational background on corporate cash holdings and value of excess cash. Pacific_Basin Finance Journal, 101339.
Nakavachara, V. (2020). CEOs and graduate business education. Journal of Education for Business, 95(2), 73-80.
Nekhili, M., et al. (2017). Gender-diverse boards and the relevance of voluntary CSR reporting. International Review of Financial Analysis, 50, 81-100.
Nurmayanti, P. (2020). Chief Executive Officer (CEO) Characteristics and Accrual Quality: Empirical Evidence from Indonesia. Andalas Journal of Accounting and Governance, 3(1), 1–29.
Pangesti, L. (2019). The Effect of Firm Size and Growth on Earnings Management. E-Mabis: Journal of Economics, Management and Business, 22(1), 186–197. https://doi.org/10.29103/e-mabis.v20i2.439
Peruri, B. communications. (2018). Peruri Records Consolidated Net Profit of IDR288 Billion in 2018 [Press release]. Retrieved from: Https://Www.Peruri.Co.Id/Press_release/206/Peruri-Torehkan-Laba-Bersih_konstruksian-Rp288-Miliar-Pada_2018#:~:Text=Peruri%20Torehkan%20Laba %20Bersih%20Kons.
Pratama, AM (2020). Erick Thohir Wants to Increase the Portion of Women and Millennials in BUMN Board of Directors. KOMPAS. Retrieved from: Https://Money.Kompas.Com/Read/2020/01/17 /125639926/Erick-Thohir-Ingin-Tambah_porsi-Wanita-Dan-Milenial-Di-Posisi-Direksi_bumn#:~:Text=JAKARTA%2C%20KOMP AS.Com%20%2D%20Menteri,Jajaran%20di%20Reksi%20perusahaan%2Dperusahaan%20BU MN.
Pucheta-Martínez, M. C. Gallego-Álvarez, I. (2019). Do board characteristics drive firm performance? An international perspective. Review of Managerial Science, 1-47.
Rejeki, SE., Ak., M.Ak., HD, & Julyanda, I. (2018). THE EFFECT OF EDUCATION LEVEL, BUSINESS SIZE, BUSINESS LENGTH AND EDUCATIONAL BACKGROUND ON THE USE OF ACCOUNTING INFORMATION ON BUSINESS SUCCESS (Case Study on SMEs in PIK Pulogadung). Krisnadwipayana Journal of Accounting and Business, 5(1). https://doi.org/10.35137/jabk.v5i1.179
Robertus, M. (2016). Good Governance, Risk Management, and Compliance. Rajawali Press.
Saerang, DPE, Tulung, JE, & Ogi, IWJ (2018). The influence of executives' characteristics on bank performance: The case of emerging markets. Journal of Governance and Regulation, 7(4), 13–18. https://doi.org/10.22495/jgr_v7_i4_p2
Sari, SNI (2020). THE EFFECT OF SELF ASSESSMENT OF GOOD CORPORATE GOVERNANCE AND RISK MANAGEMENT ON FINANCIAL PERFORMANCE. In Thesis.
Sharma, P., Cheng, L. T., & Leung, T. (2020). Impact of political connections on Chinese export firms' performance–Lessons for other emerging markets. . . Journal of Business Research, 106, 24-34.
Wu, H., Li, S., Ying, S. xiqoyan, & Chen, X. (2018). Politically connected CEOs, firm performance, and CEO pay. Journal of Business Research, 91(169-180).
Xiongyuan, W., & Shan, W. (2013). Chairman's government background, excess employment and government subsidies: Evidence from Chinese local state-owned enterprises. China Journal of Accounting Research, 6(1), 51–74. https://doi.org/https://doi.org/10.1016/j.cjar.2012.08.005
Zhang, C. (2017). Political connections and corporate environmental responsibility: Adopting or escaping? Energy Economics, 68, 539-547.
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Anny Widiasmara, M. Agus Sudrajat
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
