Issue #3 (Volume 21 2026)

Type of the article: Research Article

Abstract
This study examines how the representation of women in corporate governance, particularly on boards of directors and audit committees, impacts the quality of bank earnings in Indonesia from 2001 to 2024. To evaluate the impact of women’s representation on bank earnings quality, the two-step Generalized Method of Moments (2SYS-GMM) estimation system was applied, measured through Discretionary Loan Loss Provisions (DLLP). The results show that the presence of women on the board of directors and in audit committee chair positions significantly improves earnings quality, whereas the presence of female independent directors and female audit committee members has no significant impact on earnings quality. However, the overall representation of women on these bodies has no significant effect. These results conclude that having women in leadership, particularly as chairs of the board of directors and audit committees, is crucial for improving the quality of bank earnings. Women in these roles have greater confidence to prioritize higher earnings quality. This study fills a gap in the current literature on the relationship between women’s representation in corporate governance and banking profit quality. Further, it offers valuable insights for banking practitioners, including policymakers, regulators, investors, management, and bank depositors.