The effect of gender diversity, firm size, and leverage on performance and governance in telecom sector companies

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Abstract

This study aims to determine the effect of gender diversity, firm size, and leverage on firm performance and governance in telecommunications sector companies listed on the Indonesia Stock Exchange (IDX) during the 2018–2023 period. This study uses a quantitative approach with data sources derived from secondary data in the form of the company’s annual financial statements obtained from the official IDX website. The study population included 21 telecommunication sector companies, and through the purposive sampling technique, 18 companies were obtained as samples that met the research criteria. Data analysis was carried out using the panel data regression method to identify the effect of independent variables on company performance. The results showed that gender diversity has a negative, but insignificant effect on firm performance. Firm size contributes positively, also insignificant to firm performance. In contrast, leverage is shown to have a negative and significant influence on firm performance. These findings indicate that financial structure and gender composition in the firm have not had a significant impact on firm performance in the telecommunications sector, while high leverage tends to potentially reduce firm performance. This study provides practical implications for corporate managers, policymakers, and investors.

Keywords: Firm Performance, Gender Diversity, Firm Size, Leverage, Telecommunication Sector

Authors’ individual contribution: Conceptualization — N.; Methodology — N.; Formal Analysis — N.; Investigation — N.; Resources — N.; Writing — Original Draft — N.; Writing — Review & Editing — N.; Funding Acquisition — M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G21, G34, G39

Received: 04.11.2024
Revised: 28.03.2025; 15.05.2025
Accepted: 02.06.2025
Published online: 04.06.2025

How to cite this paper: Nurhadiansjah, & Mansur. (2025). The effect of gender diversity, firm size, and leverage on performance and governance in telecom sector companies. Business Performance Review, 3(1), 48–58. https://doi.org/10.22495/bprv3i1p5