DOI of the published article https://doi.org/10.61796/ijeirc.v2i12.431
Female Directors, Foreign Directors, Company Performance, and Credit Risk: Evidence from ASEAN Banking Companies 2020-2024
Direktur Perempuan, Direktur Asing, Kinerja Perusahaan dan Risiko Kredit : Bukti dari Perusahaan Perbankan ASEAN 2020-2024
DOI:
https://doi.org/10.21070/ups.9975Keywords:
Female Director, Foreign Director, , Firm PerformanceAbstract
This Study aims to analyze the influence of female director, foreign director, board size, bank size, net interest margin, (NIM) in bank across five ASEAN countries. Using panel data from 2020-2024 (N=35, T=5, 175 observations), the research employs panel data regression with chow, hausman, and LM test to determine the most appropriate estimation model, resulting in the application of REM using GLS. The finding reveal that female director significantly decrease financial performance, while foreign directors significantly enhance it, although neither influences credit risk. The control variables show mixed effects larger boards and banks reduce performance and increase credit risk, NIM increases performance but simultaneously elevates risk, and LTA significantly raises credit risk. This study offers new empirical insights by simultaneously examining board diversity, governance structure, and financial indicators in a cross country ASEAN banking context during the post-pandemic period, highlighting the governance risk performance trade-off often overlooked in previous studies.
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