The role of gender diversity, board size, and ESG disclosure in improving performance and managing risks
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Author(s)MuazarohLink to ORCID Index: https://orcid.org/0000-0002-0731-9474
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Wiwik LestariLink to ORCID Index: https://orcid.org/0000-0002-6616-8012
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Linda Purnama SariLink to ORCID Index: https://orcid.org/0000-0001-9758-1531
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DOIhttp://dx.doi.org/10.21511/ppm.23(1).2025.21
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Article InfoVolume 23 2025, Issue #1, pp. 288-298
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4 Downloads
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Creative Commons Attribution 4.0 International License
This study analyzes the effect of gender diversity, board size, and environmental, social, and governance (ESG) disclosures on firm performance and risk management in the consumer goods sector in Indonesia, targeting companies listed on the Indonesia Stock Exchange from 2020 to 2022. Based on 273 cases and using partial least squares-structural equation modeling (PLS-SEM), this paper tests eight direct and moderating hypotheses. The results reveal that both gender diversity and board size positively impact firm value, while board size successfully reduces firm risk. However, gender diversity does not mitigate risks. The findings indicate that increasing board gender diversity and size are positively related to performance, while only board size contributes effectively to risk reduction. ESG disclosures play a moderating role, enhancing the synergy between gender diversity and performance but showing mixed effects on risk reduction. Overall, the study highlights the importance of integrating gender diversity and strong ESG practices to achieve better performance outcomes, improve transparency, and develop a more competitive corporate strategy.
Acknowledgment
The author would like to thank the Higher Education Service Institute of Region VII of the Ministry of Education, Culture, Research and Technology and the Directorate of Research, Technology and Community Service, Directorate General of Higher Education, Research and Technology for funding this research with research contract number 076/SP2H/PT/LL7/2024.
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JEL Classification (Paper profile tab)D53, E22, G11, J16
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References41
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Tables4
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Figures2
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- Figure 1. Research framework
- Figure 2. Model output
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- Table 1. Results of model fit
- Table 2. Latent variable coefficients outputs
- Table 3. Direct effect testing
- Table 4. Indirect effect testing
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The risk management practices in the manufacturing SMEs in Cape Town
Problems and Perspectives in Management Volume 15, 2017 Issue #2 (cont. 2) pp. 386-403 Views: 3480 Downloads: 560 TO CITE АНОТАЦІЯRisk management is one of the prominent issues which are pivotal to the success of a business and may adversely affect profitability if not properly practised. Therefore, the main objective of this paper was to determine risk management practices in manufacturing SMEs in Cape Town. The research conducted was quantitative in nature and constituted the collection of data from 74 SME leaders, all of whom had to adhere to a list of strict delineation criteria. All data collected were thoroughly analyzed through means of descriptive statistics. From the findings made, it is clear that SMEs in the manufacturing sector do in fact understand risk management initiatives applicable to ‘manage’ their respective businesses towards sustainability, but not to a large extent. It was found that respondents are unaware of the elements which make risk management effective, which ultimately aids to the development of problems for SMEs. All employees, managers and owners must coordinate their efforts together to identify and manage organizational risks within their ambit to obtain total risk coverage, as well as provide assurance that these risks are effectively managed from a coordinated approach. Further studies may be carried out to identify measures that can be taken to improve the effectiveness of risk management practices in SMEs.
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Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 3221 Downloads: 1085 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
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Why banks should consider ESG risk factors in bank lending?
Sarwar Uddin Ahmed ,
Samiul Parvez Ahmed ,
Ikramul Hasan
doi: http://dx.doi.org/10.21511/bbs.13(3).2018.07
Banks and Bank Systems Volume 13, 2018 Issue #3 pp. 71-80 Views: 2953 Downloads: 1181 TO CITE АНОТАЦІЯWhy banks should be concerned about incorporating environmental, social and governance (ESG) criteria in the lending process? What is the motivation? This study aims to find the motives for considering environmental, social and governance (ESG) criteria in bank lending process. A primary survey has been conducted to know the current status and motivation for incorporating ESG factors in investment decisions. Sample comprised 30 private commercial banks (PCBs) operating in Bangladesh. Data collected were analyzed with graphs, descriptive statistics, and regression analysis. Findings of the study indicate that banks are mostly considering basic environmental, social and governance factors set by regulators qualitatively. They are lagging behind in considering the advanced ESG criteria needed for sustainable and efficient credit risk management. Based on motivation for incorporating ESG factors, it was found that banks pioneering in incorporating ESG factors in lending decisions are compensated through better financial performance. Findings of the study are expected to encourage practitioners and policy-makers to take more pragmatic steps to incorporate ESG risk factors quantitatively in lending decision-making process.
