Board gender diversity and IPO underpricing: the moderating role of managerial ownership in the banking sector

Abstract

This study examines whether board gender diversity affects IPO underpricing in the Indonesian banking sector, and whether managerial ownership moderates this relationship. The sample comprises 21 banks that conducted an IPO on the Indonesia Stock Exchange during 2010–2025, analyzed using moderated regression analysis across 12 models. Board gender diversity is measured by the presence, proportion, and number of female directors (GEND1, GEND2, GEND3). Underpricing is measured by the first-day and seventh-day initial return. GEND1 has a significant effect on underpricing. Nevertheless, GEND2 and GEND3 do not have significant effect on underpricing. Managerial ownership does not moderate the relationship between board gender diversity and underpricing. These findings inform issuers, underwriters, and regulators such as OJK on board gender composition as a governance signal in bank IPOs.