The Effect of the Proportion of Female Board of Directors on Firm Performance in All Companies Listed on the Indonesian Stock Exchange with Innovation as a Mediating Variable

The study investigates the relationship
between the proportion of female directors
on corporate boards and firm performance,
with innovation serving as a mediating
variable. Previous research has revealed
inconsistencies between those variables.
Therefore, this study investigates whether
there is a direct and indirect effect of the
proportion of female directors on firm
performance, which is innovation as a
mediating variable. To measure the
variables studied, this study also employs
quantitative data types and secondary
data sources from 55 companies listed on
the Indonesian Stock Exchange from 2017
to 2021. Using the Partial Least Square
method, the following findings were
obtained: (1) The proportion of women on
the board of directors has no direct impact
on firm performance. (2) Female on board
of directors has a positive significant
impact on innovation, (3) This research
shows a positive significant relationship
between innovation and firm performance,
and (4) The results also show full
mediation of innovation on the impact of
proportion of female on board of directors
on firm performance. Since it is being
conducted in Indonesia, it may differ in
other countries, and further research such
as using the difference mediating variables
and indicators to influence the studys
results is strongly advised.