Gender Diversity and Performance in Islamic Banks: Evidence from Emerging Markets

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Authors

  • Khoirul Anam Department of Accounting, Faculty of Economics, Universitas Selamat Sri, Kendal, Central Java, Indonesia image/svg+xml
  • Kusuma Wijaya Department of Accounting, Institut Teknologi dan Sains Nahdlatul Ulama Pekalongan, Indonesia image/svg+xml

DOI:

https://doi.org/10.69725/jies.v2i2.289

Keywords:

Gender diversity, Sharia governance, Financial performance, Islamic banking, Corporate governance

Abstract

Objective: This study aims to investigate the relationship between gender diversity and financial performance in Islamic banking, focusing in particular on the moderating effect of Sharia governance.
Methods:  Data about female representation on bank boards, in bank top management, gender diversity in recruitment, and an index of five Sharia Governance elements are collected. Moreover, financial performance is assessed using multiple indicators.
Results:  The results of this study illustrate a strong positive correlation between bank financial performance and gender diversity at the board, executive level, and organizational level. A key aspect of this study is the finding that Sharia Governance indeed positively moderates the relationship, further improving the financial impact of gender diversity. This finding is supported through robust sensitivity analysis and variation in performance indicators. It supports further and confirms the synergic positive relationship between ethical governance and diverse leadership.
Novelty: The original contribution of this study is the integration between gender diversity and Sharia theory to the emerging Sharia governance theory, going beyond traditional corporate governance models. This approach does not consider Sharia governance as an independent factor but rather as an enhancing moderator to the financial return of other factors, offering a new and ethically valid perspective to the business case on faith-based institutions’ inclusion.
Research Implication: In practical terms, this encourages regulators and Islamic finance councils to prioritize Shariah governance and gender inclusion, both as strategic drivers of sustainable performance and ethical compliance across the global industry

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Author Biographies

  • Khoirul Anam, Department of Accounting, Faculty of Economics, Universitas Selamat Sri, Kendal, Central Java, Indonesia

    Khoirul Anam is a dedicated academic and certified accountant at Universitas Selamat Sri, holding both bachelor's and master's degrees in accounting. With professional certification in accounting (Ak.), his expertise encompasses financial accounting, auditing, and accounting education. His research contributions focus on accounting practices and educational methodologies, demonstrating a strong commitment to advancing accounting knowledge and professional standards. As an educator, Khoirul is passionate about developing the next generation of accounting professionals, emphasizing both technical competence and ethical integrity in the field. His scholarly work reflects a consistent dedication to bridging theoretical accounting concepts with practical applications in the Indonesian context

  • Kusuma Wijaya, Department of Accounting, Institut Teknologi dan Sains Nahdlatul Ulama Pekalongan, Indonesia

    Kusuma Wijaya is a distinguished academic and certified professional in human resource management at the Institut Teknologi dan Sains Nahdlatul Ulama Pekalongan. Holding professional certifications in accounting and human resource management, his expertise spans financial accounting, risk management, and organizational development. Through his published works and professional practice, Kusuma has made significant contributions to advancing accounting education and professional standards in Indonesia. His research interests focus on the integration of professional accounting standards with organizational management practices, particularly in educational institutions. As an educator, he is committed to developing accounting professionals who combine technical excellence with strong ethical values in their professional practice.

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Published

2025-09-10

Issue

Vol. 2 No. 2 (2025): September

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Copyright (c) 2025 Khoirul Anam, Kusuma Wijaya (Author)

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How to Cite

Anam, K. ., & Wijaya, K. . (2025). Gender Diversity and Performance in Islamic Banks: Evidence from Emerging Markets. Journal International Economic Sharia, 2(2), 95-110. https://doi.org/10.69725/jies.v2i2.289
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