Women on Boards and Enterprise Risk Management: Pathways to Firm Value in Emerging Markets

This study investigates the role of women on boards in shaping enterprise risk management (ERM) and its subsequent pathways to firm value in emerging markets. Using panel data from non-financial firms listed on the Indonesia Stock Exchange (2018–2023), the analysis applies path modeling to capture both direct and indirect effects. The results reveal that women directors negatively influence ERM, and their presence does not significantly affect corporate strategy or firm value directly. However, a small but positive indirect effect emerges through ERM, suggesting that women’s contributions may enhance firm value when risk governance is effectively integrated. By contrast, ERM itself exhibits a negative association with firm value, reflecting its compliance-driven character in the Indonesian context. These findings highlight the symbolic rather than substantive influence of women on boards in emerging economies, while underscoring the need for institutional and structural support to strengthen their role in governance. The study contributes to debates on gender diversity, risk oversight, and value creation in corporate governance literature.