Leverage moderation in the influence of women^s boards on the profitability of Indonesian Islamic banks Via Muthmainnah Luthfi (a*), Muhamad Umar Mai (b), Ruhadi (c)
a) b) c) Master of Applied Islamic Finance and Banking, Bandung State Polytechnic, Bandung 40559, Indonesia
Abstract
The purpose of this study is to examine the moderating of leverage variables in the impact of women^s boards of commissioners and women^s sharia supervisory boards on the profitability of Islamic banks in Indonesia. The population of this study consists of Islamic banks in Indonesia that are registered with the Financial Services Authority (OJK). The sample covers 15 Islamic banks (Ib) from 2010 to 2022. This study used secondary data acquired from Islamic banks^ annual reports and financial statements, resulting in an unbalanced panel data with 148 Ib-years of observations. The data analysis model employed is multiple regression, with moderation variables processed using the PLS Wrap Application. The study^s findings indicate that the female board of commissioners. Meanwhile, the women^s sharia supervisory board has no direct effect on profitability and a negative effect when tempered by the Leverage variable. This study addresses a gap in the literature by examining the relationship between board features and corporate performance, specifically the impact of female boards of commissioners and female sharia supervisory boards on the profitability of Islamic banks in Indonesia. Furthermore, it provides knowledge and insight for banking professionals such as legislators, regulators, investors, and management.
Keywords: Female Board of Commissioners- Female Sharia Supervisory Board- Leverage- Profitability- Islamic Bank
