Title:
The Influence of Female Directors and Female Commissioners on Financial Distress

Authors:
Dorry Paramitasari Saroyo, Djuminah, Indonesia

Abstract:

This study examines how gender diversity on boards affects financial distress among Indonesian manufacturing companies listed on the IDX from 2020 to 2024. Using logistic regression with secondary data from company reports, financial distress was measured via the Altman Z-Score, while gender diversity was assessed based on the proportion of female directors and commissioners.

Results show that having more female directors significantly increases the risk of financial distress, suggesting a positive relationship. Meanwhile, female commissioners have a negative but insignificant effect, indicating their presence does not directly reduce financial difficulties.

These findings highlight the complex role of gender diversity in corporate governance and its Effect on firm stability. Future studies are recommended to include more variables and broader samples for stronger insights. This research provides useful guidance for investors in evaluating risk and for management in improving governance to prevent financial distress.

DOI: https://doi.org/10.51505/IJEBMR.2025.9903