Bank Size Moderation in the Influence of Women Audit Committees on the Financial Stability of Indonesian Banking
Sudradjat (1*), Arif Afriady (2), Rahma Nazila Muhammad (3)

1*) Department of Accounting, Politeknik Negeri Bandung
2) Department of Accounting, Politeknik Negeri Bandung
3) Department of Accounting, Politeknik Negeri Bandung

Abstract

The moderation of measures in the effect of women on the audit committee, such as the number of women on the audit committee and the percentage of women audit committee attendance at meetings, on the financial stability of Indonesian banks is the focus of this research. A sample of 47 banks listed on the Indonesia Stock Exchange (IDX) between 2010 and 2022 is used in this study, resulting in an imbalanced panel data set of 476 bank-year observations. A multivariate regression model, which includes moderation variables, is employed to examine the data. It is revealed that the proportion of women on audit committees has no influence on bank financial stability, either directly or when adjusted for size. Additionally, the ratio of women on audit committees is found to have a direct negative influence on bank financial stability, but a positive effect when the bank size is taken into account. A gap in the literature is addressed by this study, which explores the relationship between audit committee characteristics and company performance, specifically the influence of women on audit committees and the percentage of women audit committee attendance at meetings on the financial stability of the banking sector. This study also benefits banking professionals such as legislators, regulators, investors and management.

Keywords: Size moderation, women audit committee, financial stability, banking

Topic: Sustainable development