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Journal : Journal of Applied Finance

THE ROLE OF POLITICAL CONNECTIONS IN MODERATING THE EFFECT OF BOARD DIVERSITY ON FINANCIAL DISTRESS Prihatiningtias, Yeney Widya; Adiwicaksana, Surya
Journal of Applied Finance and Accounting Vol. 11 No. 2 (2024): Publish on December 2024
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/jafa.v11i2.12271

Abstract

This research aims to examine the role of political connection in moderating the effect of board gender diversity and board size on financial distress. A sample of 46 banking companies listed in Indonesia Stock Exchange between during the 2021-2023 period was selected using a purposive sampling method. Panel data regression were used for data analysis. The results of the research exhibit that board of commissioner gender diversity has no effect on financial distress; board of director gender diversity has a positive effect on financial distress; and board size has a negative effect on financial distress. Political connections cannot moderate the effect of gender diversity, but can moderate the negative effect of gender diversity and the positive effect of board size on financial distress. This finding, as such, can provide insights for corporate management and regulators to determine the most effective corporate board design to improve the companies financial performance and avoid financial distress. Keywords: Board diversity; board size; corporate governance; political connection; financial distress
Co-Authors Abdarahman M. Kalifa Abdul Ghofar Abdulrival Hartoyo Adiwicaksana, Surya Afrisal, Reza Agus Arifin Ainul Rizkiyah Ali Djamhuri Ali Djamhuri Alif Rodhiyan Alita Puspa Ningrum Alita Puspa Ningrum, Alita Puspa Ameldan Alchair, Achmad Rifadi Amrizal Imawan Anak Agung Istri Sri Wiadnyani Andry Yunanto Arasy, Fajar Hafidh Areta Widya Kusumadewi Areta Widya Kusumadewi Arum Prastiwi Astia Putriana, Astia Astutiningrum Astutiningrum Astutiningrum, Astutiningrum Aulia Rahma Yani Bahri, Nur Alim Bambang Hariadi Bambang Subroto Cahaya, Devi Nur Destriviyani, Viola Devi Cheilsa Sumarno Devi Nur Cahaya Djuang, Vinsensius Ferrer Antonius Driana Leniwati Eko Ganis Sukoharsono Elok Riskika Putri Fahrizal Irfan Alfianto Fajar Hafidh Arasy Fakhirah, Sarah Febriana Putri Lestyadi Fia Annahdliyah Khairani Fidya Gumilang Arianwuri Ghazi, Achmad Fariz Gracyella Natalie Putri Karo Karo Gugus Irianto Gugus Irianto Habib Muhammad Shahib Hariadi, Bambang Ikhsan, Muhammad Choiri Ikram, Dzul Imam Subekti Imam Subekti Intan Lifinda Ayuning Putri Isywara, Aristi Prita Ita Yuni Kartika Iwan Triyuwono Julianto, Sofyan Wijaya Karimatun Nisa’ Karo Karo, Gracyella Natalie Putri Lilik Purwanti Lusiana Lusiana M. Achsin M.Khairul Dzakirin Made Sudarma Maudina Rahma Wardhani Mody Kusumatuti, Febriyanti Mohamad Khoiru Rusydi Muhammad Dimar Alam Nadia Dayanti Nanik Wahyuni ‎ Nisa’, Karimatun Novian Seno Saden Novian Seno Saden, Novian Seno Nur Alim Bahri Nurkholis Nurkholis Nurkholis Octadila Laily Anggraeni Octadila Laily Anggraeni, Octadila Laily Pertiwi, Sekar Purweni Widhianningrum Putri, Aliyah Alamanda Putri, Kalyana Btari Putri, Shafa Alika Rahmat, Muhammad Aldi Alif Reza Afrisal Rifki Inderawan, Ahmad Rinaldi Rinaldi Rini Ridhawati Riza Muttaqin Rizkiyah, Ainul Roekhudin, Roekhudin Saraswati , Ni Made Ananda Saraswati, Ni Made Ananda Sari Atmini Satia Yustisia Sinta Yuliastutik Siti Rodliyah Sofyan Wijaya Julianto Sri Palupi Prabandari Sukarharsono, Eko Ganis Sumarno, Devi Cheilsa Sutrisno T Sutrisno T Sutrisno T. Sutrisno, Sutrisno Ulfah, Sitti Mukhtia Unti Ludigdo Unti Ludigdo Ustantini, Sinta Wardhani, Maudina Rahma Wasis Rizki Widyanto Wikantara, Agung Gede Wiwik Hidajah Ekowati Wuryan Andayani Wuryan Andayani Yuliastutik, Sinta Yuningsih, Yuni Yuyut Krisdiantoro Yuyut Krisdiantoro