Women on board and firm value: the role of risk and philanthropy

Purpose This study aims to examine the influence of female representation on corporate boards on firm value, with a particular focus on the mediating effects of risk management and philanthropic activities. It seeks to enhance the understanding of how the agency theory and stakeholder theory explain these relationships. Design/methodology/approach A quantitative research design was used, analyzing a sample of 325 firms listed on the Indonesia Stock Exchange between 2019 and 2022. The study uses Tobin’s Q as a proxy for firm value and applies structural equation modeling to test the mediating roles of risk and philanthropy. Findings The results indicate that female board representation significantly increases firm value. Risk management mediates this relationship, demonstrating improved strategic oversight. Philanthropic activities also act as a mediator, highlighting the broader social impact of gender diversity. Originality/value This study provides the first empirical evidence on the dual mediation effects of risk and philanthropy in the context of board gender diversity within a developing country. It advances the application of agency and stakeholder theories to governance and offers actionable insights for policy and corporate decision-making regarding board composition.