THE IMPACT OF GOOD CORPORATE GOVERNANCE, BOARD GENDER DIVERSITY AND OPERATIONAL EFFICIENCY ON BANKING FINANCIAL PERFORMANCE

Abstract

This study is motivated by the fluctuating financial performance of banking companies in Indonesia during the research period. This condition reflects inconsistencies between the implementation of corporate governance, board gender diversity, and operational efficiency toward company profitability. This study aims to analyze the effect of Good Corporate Governance (GCG), Board Gender Diversity, and Operational Efficiency on financial performance proxied by Return on Assets (ROA). The research objects are banking companies listed on the Indonesia Stock Exchange during the 2020–2024 period.

This research employs a quantitative approach with an associative research design. The data used are secondary data obtained from companies’ financial statements and annual reports. The sample was determined using purposive sampling techniques, while the analytical method applied is panel data regression. The research testing includes selecting the best model, conducting classical assumption tests, and hypothesis testing.

The results indicate that partially, Good Corporate Governance and Board Gender Diversity do not have a significant effect on Return on Assets (ROA). Meanwhile, Operational Efficiency has a significant effect on the financial performance of banking companies. Simultaneously, all independent variables significantly affect financial performance.

The findings suggest that operational efficiency is the dominant factor in improving banking profitability. The implementation of corporate governance and board gender diversity still require optimization to provide a more substantial contribution to financial performance improvement.