Liquidity, firm size, and financial performance: the moderating role of female directors in Indonesian industrial firms
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Nov 30, 2025
Keywords:
Female Directors, Financial Performance, Firm Size, Liquidity
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Economy
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Abstract
This research examines how liquidity, firm size, and female directors affect the financial performance of industrial sector firms listed on the Indonesia Stock Exchange. Using the dependent variable of return on assets (ROA), the analysis considered liquidity (CR) and firm size (measured by total assets), alongside the moderating role of female representation on boards directors. The findings indicate that liquidity has a positive and significant impact on financial performance, supporting agency theory, signalling theory, and resource dependence theory. Meanwhile, firm size has a positive but insignificant effect on financial performance. However, women's presence on boards does not moderate the relationship between liquidity and performance, primarily due to their limited representation, which renders their role symbolic rather than impactful. In contrast, women’s presence on boards amplifies the influence of firm size on performance, indicating that female directors improve decision-making quality, monitoring effectiveness, and resource access in larger firms. These findings emphasise the significance of financial health, operational scale, and inclusive governance as crucial drivers of corporate success in Indonesia's industrial sector
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Ineputri, A. L. and Santoso, H. . (2025) “Liquidity, firm size, and financial performance: the moderating role of female directors in Indonesian industrial firms”, Jurnal Mantik, 9(3), pp. 860-870. doi: 10.35335/mantik.v9i3.6706.
References
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Arvanitis, S. E., Varouchas, E. G., & Agiomirgianakis, G. M. (2022). Does Board Gender Diversity Really Improve Firm Performance? Evidence from Greek Listed Firms. Journal of Risk and Financial Management, 15(7). https://doi.org/10.3390/jrfm15070306
Bart, C., & McQueen, G. (2013). Why women make better directors. International Journal of Business Governance and Ethics, 8(1), 93–99. https://doi.org/10.1504/IJBGE.2013.052743
Bolarinwa, S. T., & Obembe, O. B. (2019). Firm Size–Profitability Nexus: An Empirical Evidence from Nigerian Listed Financial Firms. Global Business Review, 20(5), 1109–1121. https://doi.org/10.1177/0972150917733834
Dang, C., (Frank) Li, Z., & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of Banking and Finance, 86, 159–176. https://doi.org/10.1016/j.jbankfin.2017.09.006
De Masi, S., S?omka-Go??biowska, A., & Paci, A. (2022). Women on boards and corporate environmental performance in Italian companies: The importance of nomination background. Business Ethics, the Environment and Responsibility, 31(4), 981–998. https://doi.org/10.1111/beer.12467
Diroh, L. U. F., & Mochlasin, M. (2023). Islamic Corporate Social Responsibility, Leverage And Liquidity On Financial Performance Moderated By Company Size. JAS (Jurnal Akuntansi Syariah), 7(1), 1–13. https://doi.org/10.46367/jas.v7i1.898
Dobbin, F., & Jung, J. (2011). Corporate Board Gender Diversity and Stock Performance: The Competence GAP or Institutional Investor Bias? North Carolina Law Review, 89(2007), 809–838.
Fernández, E., Iglesias-Antelo, S., López-López, V., Rodríguez-Rey, M., & Fernandez-Jardon, C. M. (2019). Firm and industry effects on small, medium-sized and large firms’ performance. BRQ Business Research Quarterly, 22(1), 25–35. https://doi.org/10.1016/j.brq.2018.06.005
Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51(3), 314–338. https://doi.org/10.1016/j.jacceco.2011.01.005
Hashmi, S. D., Gulzar, S., Ghafoor, Z., & Naz, I. (2020). Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS. Future Business Journal, 6(1), 1–19. https://doi.org/10.1186/s43093-020-00015-y
Haslam, S. A., Ryan, M. K., Kulich, C., Trojanowski, G., & Atkins, C. (2010). Investing with prejudice: The relationship between women’s presence on company boards and objective and subjective measures of company performance. British Journal of Management, 21(2), 484–497. https://doi.org/10.1111/j.1467-8551.2009.00670.x
Houthoofd, N., Desmidt, S., & Fidalgo, E. G. (2010). Analyzing firm performance heterogeneity: The relative effect of business domain. Management Decision, 48(6), 996–1009. https://doi.org/10.1108/00251741011053505
Huliselan, M. (2024). THE The Analysis Of The Impact Of Return On Asset, Return On Equity, And Ratio Of Liquidity, On Overall Company Performance: Case Study In Banking Sector Listed Indonesia Stock Exchange. Indo-Fintech Intellectuals: Journal of Economics and Business, 4(6), 3808–3816. https://doi.org/10.54373/ifijeb.v4i6.2761
Ionascu, M., Ionascu, I., Sacarin, M., & Minu, M. (2018). Women on boards and financial performance: Evidence from a European emerging market. Sustainability (Switzerland), 10(5). https://doi.org/10.3390/su10051644
ISLAM, H., RAHMAN, J., TANCHANGYA, T., & ISLAM, M. A. (2023). Impact of firms’ size, leverage, and net profit margin on firms’ profitability in the manufacturing sector of Bangladesh: An empirical analysis using GMM estimation. Journal of Ekonomi, 5(1), 1–9. https://doi.org/10.58251/ekonomi.1275742
Jensen, M., & Meckling, W. (2014). THEORY OF THE FIRM: MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE. The Corporate Financiers, 3, 305–360. https://doi.org/10.1057/9781137341280.0038
Juniartin, I. T., & Aji, S. S. B. (2025). the Impact of Corporate Social Responsibility Reporting and Environmental Expenditures on Financial Performance. Jurnal Akuntansi Bisnis, 18(1), 90. https://doi.org/10.30813/jab.v18i1.7867
Kabir, A., Ikra, S. S., Saona, P., & Azad, M. A. K. (2023). Board gender diversity and firm performance: new evidence from cultural diversity in the boardroom. LBS Journal of Management & Research, 21(1), 1–12. https://doi.org/10.1108/lbsjmr-06-2022-0022
Kurniawati, D. D., Ratnawati, T., & Pristiana, U. (2024). The Effect of Liquidity, Activitiy and Capital Structure on Profitability, Financial Distress and Firm Value in Building Construction and Property and Real Estate Companies Listed on The Indonesia Stock Exchange. International Journal of Economics (IJEC), 3(2), 735–751. https://doi.org/10.55299/ijec.v3i2.940
Li, K., Musah, M., Kong, Y., Adjei Mensah, I., Antwi, S. K., Bawuah, J., Donkor, M., Coffie, C. P. K., & Andrew Osei, A. (2020). Liquidity and Firms’ Financial Performance Nexus: Panel Evidence From Non-Financial Firms Listed on the Ghana Stock Exchange. SAGE Open, 10(3). https://doi.org/10.1177/2158244020950363
Mehmetaj, G., & Hajdari, V. (2025). Navigating Financial Performance in Crisis: Investment, Liquidity, and Solvency of Banks During the Pandemic. Risk Governance and Control: Financial Markets and Institutions, 15(2), 19–30. https://doi.org/10.22495/rgcv15i2p2
Mínguez-Vera, A., & Martin, A. (2011). Gender and management on spanish SMEs: An empirical analysis. International Journal of Human Resource Management, 22(14), 2852–2873. https://doi.org/10.1080/09585192.2011.599948
Moreno-Enguix, M. del R., Gras-Gil, E., & Lloret, N. N. E. (2025). Critical Mass of Women on Boards and Firm Performance: Insights from Spanish State-Owned Enterprises. Journal of the Knowledge Economy, 0123456789. https://doi.org/10.1007/s13132-025-02742-5
Nam, N. H. P., & Tuyen, T. T. M. (2024). Impact of liquidity on capital structure and financial performance of non-financial-listed companies in the vietnam stock market. Future Business Journal, 10(1), 1–19. https://doi.org/10.1186/s43093-024-00412-7
Nguyen, T. T. C., Le, A. T. H., & Nguyen, C. Van. (2024). The Impact of Liquidity and Corporate Efficiency on Profitability. Emerging Science Journal, 8(1), 180–191. https://doi.org/10.28991/ESJ-2024-08-01-013
Nuryanti, N. A., & Suryandani, W. (2025). Pengaruh Likuiditas, Ukuran Perusahaan Dan Leverage Terhadap Kinerja Keuangan. Buletin Studi Ekonomi, 30(01), 1. https://doi.org/10.24843/bse.2025.v30.i01.p01
Poliakov, R., & Zayukov, I. (2023). Assessment of the relationship between liquidity and unprofitability of companies in preventing their bankruptcy. Problems and Perspectives in Management, 21(1), 141–153. https://doi.org/10.21511/ppm.21(1).2023.13
Priskila, P., & Dewi, S. P. (2023). the Impact of Asset Management, Capital Structure, and Firm Size Toward Profitability. International Journal of Application on Economics and Business, 1(3), 1120–1132. https://doi.org/10.24912/ijaeb.v1i3.1120-1132
Rahima, A. Y., & Muid, D. (2023). The Effect Of Financial Performance And Firm Size On Firm Value (Case Study of Banking Companies Listed on the Indonesia Stock Exchange in 2018-2020). Tax Accounting Applied Journal, 2(1), 1–8. https://doi.org/10.14710/taaij.2023.17990
Rusyiana, P., Anam, M. K., Ardiyanto, W. P., Negeri, U., & Abstrak, S. (2025). Pengaruh Peraturan Otoritas Jasa Keuangan (Ojk) Terhadap Tata Kelola Perusahaan. Jurnal Ilmiah Wahana Pendidikan, 11(C), 163–173.
Sagala, Y. H. O., Pangaribuan, H., & Siagian, H. L. (2024). The influence of audit quality, company size, profitability, and inventory intensity on tax avoidance in manufacturing companies registered on the IDX in 2020-2022. Jurnal Mantik, 8(1), 111–121. https://doi.org/10.35335/mantik.v8i1.4952
Samo, A. H., & Murad, H. (2019). Impact of liquidity and financial leverage on firm’s profitability – an empirical analysis of the textile industry of Pakistan. Research Journal of Textile and Apparel, 23(4), 291–305. https://doi.org/10.1108/RJTA-09-2018-0055
Saputri, I. N., & Setiawati, E. (2024). Pengaruh Firm Size Dan Leverage Terhadap Kinerja Keuangan Perusahaan, Dengan Good Corporate Governance Sebagai Variabel Moderasi (Studi Empiris Pada Perusahaan Industri Yang Terdaftar Di Bursa Efek Indonesia Tahun 2019-2022). Management Studies and Entrepreneurship Journal, 5(1), 441–455. http://journal.yrpipku.com/index.php/msej
Simionescu, L. N., Gherghina, ?. C., Tawil, H., & Sheikha, Z. (2021). Does board gender diversity affect firm performance? Empirical evidence from Standard & Poor’s 500 Information Technology Sector. Financial Innovation, 7(1). https://doi.org/10.1186/s40854-021-00265-x
Singh, J., Singhania, S., & Aggrawal, D. (2023). Does board gender diversity impact financial performance? Evidence from the Indian IT sector. Society and Business Review, 18(1), 51–70. https://doi.org/10.1108/SBR-09-2021-0164
Singh, R., Gupta, C. P., & Chaudhary, P. (2023). Defining Return on Assets (ROA) in Empirical Corporate Finance Research: A Critical Review. Empirical Economics Letters, 23(January), 1–12. https://doi.org/10.5281/zenodo.10901886
Urrahmah, S., & Mukti, A. H. (2021). the Effect of Liquidity, Capital Intensity, and Inventory Intensity on Tax Avoidance. International Journal of Research -GRANTHAALAYAH, 9(12), 1–16. https://doi.org/10.29121/granthaalayah.v9.i12.2021.4399
Wijaya, H., & Memarista, G. (2024). Board Size and Firm Performance: The Moderating Role of Female Representation. Jurnal Akuntansi Dan Keuangan, 26(1), 18–28. https://doi.org/10.9744/jak.26.1.18-28
Zoraya, I., Fitranita, V., & Wijayanti, I. O. (2022). Pengaruh Profitabilitas, Leverage dan kepemilikan Manajerial Terhadap Islamic Social Reporting (ISR) dengan Ukuran Perusahaan (Size) Sebagai Variabel Moderating (Studi Kasus pada Bank Umum Syariah di Indonesia Tahun 2015-2019). Managament Insight: Jurnal Ilmiah Manajemen, 17(1), 21–39.
Al-Shaer, H., Kuzey, C., Uyar, A., & Karaman, A. S. (2024). Corporate strategy, board composition, and firm value. International Journal of Finance and Economics, 29(3), 3177–3202. https://doi.org/10.1002/ijfe.2827
Arvanitis, S. E., Varouchas, E. G., & Agiomirgianakis, G. M. (2022). Does Board Gender Diversity Really Improve Firm Performance? Evidence from Greek Listed Firms. Journal of Risk and Financial Management, 15(7). https://doi.org/10.3390/jrfm15070306
Bart, C., & McQueen, G. (2013). Why women make better directors. International Journal of Business Governance and Ethics, 8(1), 93–99. https://doi.org/10.1504/IJBGE.2013.052743
Bolarinwa, S. T., & Obembe, O. B. (2019). Firm Size–Profitability Nexus: An Empirical Evidence from Nigerian Listed Financial Firms. Global Business Review, 20(5), 1109–1121. https://doi.org/10.1177/0972150917733834
Dang, C., (Frank) Li, Z., & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of Banking and Finance, 86, 159–176. https://doi.org/10.1016/j.jbankfin.2017.09.006
De Masi, S., S?omka-Go??biowska, A., & Paci, A. (2022). Women on boards and corporate environmental performance in Italian companies: The importance of nomination background. Business Ethics, the Environment and Responsibility, 31(4), 981–998. https://doi.org/10.1111/beer.12467
Diroh, L. U. F., & Mochlasin, M. (2023). Islamic Corporate Social Responsibility, Leverage And Liquidity On Financial Performance Moderated By Company Size. JAS (Jurnal Akuntansi Syariah), 7(1), 1–13. https://doi.org/10.46367/jas.v7i1.898
Dobbin, F., & Jung, J. (2011). Corporate Board Gender Diversity and Stock Performance: The Competence GAP or Institutional Investor Bias? North Carolina Law Review, 89(2007), 809–838.
Fernández, E., Iglesias-Antelo, S., López-López, V., Rodríguez-Rey, M., & Fernandez-Jardon, C. M. (2019). Firm and industry effects on small, medium-sized and large firms’ performance. BRQ Business Research Quarterly, 22(1), 25–35. https://doi.org/10.1016/j.brq.2018.06.005
Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51(3), 314–338. https://doi.org/10.1016/j.jacceco.2011.01.005
Hashmi, S. D., Gulzar, S., Ghafoor, Z., & Naz, I. (2020). Sensitivity of firm size measures to practices of corporate finance: evidence from BRICS. Future Business Journal, 6(1), 1–19. https://doi.org/10.1186/s43093-020-00015-y
Haslam, S. A., Ryan, M. K., Kulich, C., Trojanowski, G., & Atkins, C. (2010). Investing with prejudice: The relationship between women’s presence on company boards and objective and subjective measures of company performance. British Journal of Management, 21(2), 484–497. https://doi.org/10.1111/j.1467-8551.2009.00670.x
Houthoofd, N., Desmidt, S., & Fidalgo, E. G. (2010). Analyzing firm performance heterogeneity: The relative effect of business domain. Management Decision, 48(6), 996–1009. https://doi.org/10.1108/00251741011053505
Huliselan, M. (2024). THE The Analysis Of The Impact Of Return On Asset, Return On Equity, And Ratio Of Liquidity, On Overall Company Performance: Case Study In Banking Sector Listed Indonesia Stock Exchange. Indo-Fintech Intellectuals: Journal of Economics and Business, 4(6), 3808–3816. https://doi.org/10.54373/ifijeb.v4i6.2761
Ionascu, M., Ionascu, I., Sacarin, M., & Minu, M. (2018). Women on boards and financial performance: Evidence from a European emerging market. Sustainability (Switzerland), 10(5). https://doi.org/10.3390/su10051644
ISLAM, H., RAHMAN, J., TANCHANGYA, T., & ISLAM, M. A. (2023). Impact of firms’ size, leverage, and net profit margin on firms’ profitability in the manufacturing sector of Bangladesh: An empirical analysis using GMM estimation. Journal of Ekonomi, 5(1), 1–9. https://doi.org/10.58251/ekonomi.1275742
Jensen, M., & Meckling, W. (2014). THEORY OF THE FIRM: MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE. The Corporate Financiers, 3, 305–360. https://doi.org/10.1057/9781137341280.0038
Juniartin, I. T., & Aji, S. S. B. (2025). the Impact of Corporate Social Responsibility Reporting and Environmental Expenditures on Financial Performance. Jurnal Akuntansi Bisnis, 18(1), 90. https://doi.org/10.30813/jab.v18i1.7867
Kabir, A., Ikra, S. S., Saona, P., & Azad, M. A. K. (2023). Board gender diversity and firm performance: new evidence from cultural diversity in the boardroom. LBS Journal of Management & Research, 21(1), 1–12. https://doi.org/10.1108/lbsjmr-06-2022-0022
Kurniawati, D. D., Ratnawati, T., & Pristiana, U. (2024). The Effect of Liquidity, Activitiy and Capital Structure on Profitability, Financial Distress and Firm Value in Building Construction and Property and Real Estate Companies Listed on The Indonesia Stock Exchange. International Journal of Economics (IJEC), 3(2), 735–751. https://doi.org/10.55299/ijec.v3i2.940
Li, K., Musah, M., Kong, Y., Adjei Mensah, I., Antwi, S. K., Bawuah, J., Donkor, M., Coffie, C. P. K., & Andrew Osei, A. (2020). Liquidity and Firms’ Financial Performance Nexus: Panel Evidence From Non-Financial Firms Listed on the Ghana Stock Exchange. SAGE Open, 10(3). https://doi.org/10.1177/2158244020950363
Mehmetaj, G., & Hajdari, V. (2025). Navigating Financial Performance in Crisis: Investment, Liquidity, and Solvency of Banks During the Pandemic. Risk Governance and Control: Financial Markets and Institutions, 15(2), 19–30. https://doi.org/10.22495/rgcv15i2p2
Mínguez-Vera, A., & Martin, A. (2011). Gender and management on spanish SMEs: An empirical analysis. International Journal of Human Resource Management, 22(14), 2852–2873. https://doi.org/10.1080/09585192.2011.599948
Moreno-Enguix, M. del R., Gras-Gil, E., & Lloret, N. N. E. (2025). Critical Mass of Women on Boards and Firm Performance: Insights from Spanish State-Owned Enterprises. Journal of the Knowledge Economy, 0123456789. https://doi.org/10.1007/s13132-025-02742-5
Nam, N. H. P., & Tuyen, T. T. M. (2024). Impact of liquidity on capital structure and financial performance of non-financial-listed companies in the vietnam stock market. Future Business Journal, 10(1), 1–19. https://doi.org/10.1186/s43093-024-00412-7
Nguyen, T. T. C., Le, A. T. H., & Nguyen, C. Van. (2024). The Impact of Liquidity and Corporate Efficiency on Profitability. Emerging Science Journal, 8(1), 180–191. https://doi.org/10.28991/ESJ-2024-08-01-013
Nuryanti, N. A., & Suryandani, W. (2025). Pengaruh Likuiditas, Ukuran Perusahaan Dan Leverage Terhadap Kinerja Keuangan. Buletin Studi Ekonomi, 30(01), 1. https://doi.org/10.24843/bse.2025.v30.i01.p01
Poliakov, R., & Zayukov, I. (2023). Assessment of the relationship between liquidity and unprofitability of companies in preventing their bankruptcy. Problems and Perspectives in Management, 21(1), 141–153. https://doi.org/10.21511/ppm.21(1).2023.13
Priskila, P., & Dewi, S. P. (2023). the Impact of Asset Management, Capital Structure, and Firm Size Toward Profitability. International Journal of Application on Economics and Business, 1(3), 1120–1132. https://doi.org/10.24912/ijaeb.v1i3.1120-1132
Rahima, A. Y., & Muid, D. (2023). The Effect Of Financial Performance And Firm Size On Firm Value (Case Study of Banking Companies Listed on the Indonesia Stock Exchange in 2018-2020). Tax Accounting Applied Journal, 2(1), 1–8. https://doi.org/10.14710/taaij.2023.17990
Rusyiana, P., Anam, M. K., Ardiyanto, W. P., Negeri, U., & Abstrak, S. (2025). Pengaruh Peraturan Otoritas Jasa Keuangan (Ojk) Terhadap Tata Kelola Perusahaan. Jurnal Ilmiah Wahana Pendidikan, 11(C), 163–173.
Sagala, Y. H. O., Pangaribuan, H., & Siagian, H. L. (2024). The influence of audit quality, company size, profitability, and inventory intensity on tax avoidance in manufacturing companies registered on the IDX in 2020-2022. Jurnal Mantik, 8(1), 111–121. https://doi.org/10.35335/mantik.v8i1.4952
Samo, A. H., & Murad, H. (2019). Impact of liquidity and financial leverage on firm’s profitability – an empirical analysis of the textile industry of Pakistan. Research Journal of Textile and Apparel, 23(4), 291–305. https://doi.org/10.1108/RJTA-09-2018-0055
Saputri, I. N., & Setiawati, E. (2024). Pengaruh Firm Size Dan Leverage Terhadap Kinerja Keuangan Perusahaan, Dengan Good Corporate Governance Sebagai Variabel Moderasi (Studi Empiris Pada Perusahaan Industri Yang Terdaftar Di Bursa Efek Indonesia Tahun 2019-2022). Management Studies and Entrepreneurship Journal, 5(1), 441–455. http://journal.yrpipku.com/index.php/msej
Simionescu, L. N., Gherghina, ?. C., Tawil, H., & Sheikha, Z. (2021). Does board gender diversity affect firm performance? Empirical evidence from Standard & Poor’s 500 Information Technology Sector. Financial Innovation, 7(1). https://doi.org/10.1186/s40854-021-00265-x
Singh, J., Singhania, S., & Aggrawal, D. (2023). Does board gender diversity impact financial performance? Evidence from the Indian IT sector. Society and Business Review, 18(1), 51–70. https://doi.org/10.1108/SBR-09-2021-0164
Singh, R., Gupta, C. P., & Chaudhary, P. (2023). Defining Return on Assets (ROA) in Empirical Corporate Finance Research: A Critical Review. Empirical Economics Letters, 23(January), 1–12. https://doi.org/10.5281/zenodo.10901886
Urrahmah, S., & Mukti, A. H. (2021). the Effect of Liquidity, Capital Intensity, and Inventory Intensity on Tax Avoidance. International Journal of Research -GRANTHAALAYAH, 9(12), 1–16. https://doi.org/10.29121/granthaalayah.v9.i12.2021.4399
Wijaya, H., & Memarista, G. (2024). Board Size and Firm Performance: The Moderating Role of Female Representation. Jurnal Akuntansi Dan Keuangan, 26(1), 18–28. https://doi.org/10.9744/jak.26.1.18-28
Zoraya, I., Fitranita, V., & Wijayanti, I. O. (2022). Pengaruh Profitabilitas, Leverage dan kepemilikan Manajerial Terhadap Islamic Social Reporting (ISR) dengan Ukuran Perusahaan (Size) Sebagai Variabel Moderating (Studi Kasus pada Bank Umum Syariah di Indonesia Tahun 2015-2019). Managament Insight: Jurnal Ilmiah Manajemen, 17(1), 21–39.
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