Gender Diversity on Boards, Efficiency and Consumption of Renewable Energy on Firm Performance

The existing literature provides insights into the relationship between board gender diversity and various aspects of corporate performance, including renewable energy consumption. Atif et al. specifically address the positive relationship between board gender diversity and renewable energy consumption in the United States, highlighting that the presence of two or more women on the board significantly impacts renewable energy consumption, particularly through the role of female independent directors. This finding is consistent with the critical mass theory, which suggests that a certain number of minority group members are needed to influence outcomes in a larger group. Contradictorily, while Atif et al. find a positive effect of board gender diversity on renewable energy consumption and firm financial performance, other studies focus on different outcomes of gender diversity on board. For example, Fadli emphasizes the positive effect of female directors on corporate social responsibility (CSR) reporting in Jordan, a context without gender board balance regulations. Our research develops knowledge on how companies conduct energy efficiency and renewable energy consumption in energy companies on the Indonesia Stock Exchange in the last 3 years from 2020 to 2022 and see the impact on company performance. Panel data analysis shows that an increase in renewable energy consumption and total board size has a significant impact on financial company performance one year ahead.