BOARD GENDER COMPOSITION, LEVERAGE, AND FIRM VALUE: DIVIDEND POLICY MEDIATION WITH AKHLAK VALUES MODERATION IN STATE-OWNED ENTERPRISES ON INDONESIA STOCK EXCHANGE (IDX)

Abstract

Corporate governance dynamics in State-Owned Enterprises (SOEs) require a unique approach that balances commercial and social objectives. Board gender diversity and capital structure (leverage) are critical factors influencing firm value. However, the mechanisms of their influence, particularly through dividend policy and as moderated by specific corporate values remain underexplored. This is especially relevant in the context of Indonesian SOEs, which are guided by the AKHLAK values (Trustworthy, Competent, Harmonious, Loyal, Adaptive, and Collaborative). This study aims to analyze the direct effects of board gender composition and leverage on firm value, as well as the indirect effects mediated by dividend policy. Furthermore, it investigates the role of AKHLAK values implementation as a moderating variable in the relationship between gender composition, leverage, dividend policy, and firm value. The research population includes all SOEs listed on the Indonesia Stock Exchange (IDX) from 2015 to 2024. Data were collected from annual reports and sustainability reports. Hypothesis testing was conducted using Structural Equation Modeling (SEM) with a Partial Least Squares (PLS) approach, a method reliable for analyzing complex models with mediation and moderation effects. The results show that board gender composition has a significant direct effect on firm value, whereas leverage has an insignificant direct effect. Dividend policy proved to act as a partial mediator in this relationship. Implementation of AKHLAK values significantly strengthens (moderates) the relationship by mitigating the potential negative impact of high leverage on firm value. However, the AKHLAK values did not strengthen (moderate) the effect of board gender diversity on firm value. This indicates that a strong ethical and cultural foundation enhances the benefits of sound governance and prudent financial management. This study provides crucial insights for SOE policymakers and management. It emphasizes that beyond structural policies, such as appointing female directors and managing debt, actively cultivating AKHLAK corporate values is essential for enhancing firm value. For investors, these findings highlight the importance of assessing a company's value system as a key indicator of its long-term sustainability and value creation potential.