Analysis investigates how female commissioners influence business risks and profitability in Indonesian rural banks, suggesting improved governance practices.
Key Points
The presence of female commissioners moderates the negative effects of credit risk on profitability.
Credit risk and operational risk significantly reduce profitability as indicated by lower return on assets (ROA).
Liquidity risk does not consistently impact profitability outcomes within Indonesian rural banks.
Data from 30 Indonesian rural banks over four years highlights the importance of gender diversity in corporate governance.