THE EFFECT OF GENDER DIVERSITY ON FINANCIAL PERFORMANCE AND INVESTORS DECISIONS TO INVEST IN COMPANIES LISTED ON THE IDX

Abstract

The research was aimed to know the effect of gender diversity on financial performance and investor’s decision to invest on companies that listed on the IDX. Gender diversity is measured by the number of female employees divided by the total number of employees from the sustainability report. Whereas,
financial performance is measured by the current ratio (CR), and investor’s decision to invest are measured by trading volume activity (TVA). This study used data from companies that listed on the IDX with an observation period during 2017-2019. This research used a simple regression method at SPSS as a data testing application. The results of this study indicate that gender diversity is proven to have an effect on financial performance and investor’s decision to invest, but the direction of the effect is negative