Competition, Leverage, and Profitability: Does Gender Diversity Affect The Relationship?

This study analyzes the effect of competition and leverage on profitability. This study also analyzes gender diversity on the board of directors as a moderation in the effect of competition and leverage on profitability. Purposive sampling was used for selecting these study’s samples and obtained 125 companies and 372 observations. The data processing technique in this study is multiple linear regression. The results of this study reveal that competition and debt significantly reduce a company’s profitability and gender diversity positively moderates the effect of competition and leverage on company profitability. This shows that the existence of gender diversity on the board of directors increases the company's ability to generate profits.