The objective of this research is to determine how gender diversity, board tenure, education level, and independence affect the bottom lines of Indonesian manufacturing enterprises. The correlation between board traits and financial success of companies is investigated in this quantitative research that makes use of secondary data. This may be because women in manufacturing are underrepresented in strategic roles or because of organizational culture, but the study found no correlation between gender diversity on boards of directors and financial success. On the other side, board members' seniority and familiarity with the inner workings of the business are positively and significantly correlated with their length of service, suggesting that these factors lead to better financial results. Furthermore, it is beneficial and crucial when board members have a high level of education. This helps with strategic monitoring and decision-making. An intriguing finding, meanwhile, was that the percentage of independent board members significantly impacted financial performance in a negative way. Because of their lack of familiarity with the manufacturing industry's complicated business environment and their lack of active involvement, independent board members are less successful in corporate governance, highlighting a gap between their nominal independence status and their functional efficacy. In addition to the number of board members, these results highlight the significance of their quality, expertise, and engagement in carrying out their oversight and decision-making duties. The findings of this study may help businesses and government agencies optimize their governance systems to ensure long-term financial success.
Sari et al. (Sat,) studied this question.
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