The Impact of ROA And NPL on Financial Sustainability: The Mediating Role of Board Gender

This study seeks to examine the influence of ROA and NPL on the financial sustainability, with gender-diverse boards as a moderating variable. This research is correlative and uses a quantitative methodology. This study examines all 47 banking companies listed on the Indonesia Stock Exchange from 2019 to 2023. This study uses regression analysis and path analysis with the help of Eviews software, utilizing the Sobel test. The findings of this study demonstrate that ROA positively influences the financial sustainability of banks, whereas NPL and board gender exhibit a positive yet insignificant effect on the financial sustainability of banks. Conversely, gender diversity on the board does not moderate the impact of ROA and NPL on the financial viability of banks. This study underscores the necessity for bank management to perform a comprehensive financial analysis utilizing factors such as ROA and NPL to evaluate the bank's capacity to create profit and mitigate risk. Gender diversity on the board of directors, while not demonstrated to be significant in this study, continues to merit consideration as a supplementary element in enhancing analysis and strategic decision-making. This research underscores the necessity of enhancing profitability via operational efficiency and asset management to attain financial sustainability. Credit risk management is essential despite the insignificance of non-performing loans (NPL). Gender diversity on the board of directors can enhance corporate governance and render decision-making more inclusive and responsive.