While extensive literature highlights the importance of liquidity creation in banking, limited empirical attention has been given to how Chief Financial Officer (CFO) characteristics influence this core function, particularly in emerging markets like Indonesia. To fill this gap, this study investigates the impact of CFO attributes including gender, age, ethnicity, and tenure on liquidity creation among Indonesian banks. Using panel data from 40 banks listed on the Indonesia Stock Exchange between 2013 and 2023, the study employs robust Ordinary Least
Squares (OLS) regression to examine the relationship between CFO characteristics and liquidity creation. The results reveal that CFO age positively affects liquidity creation, suggesting that older CFOs may play a more effective role in liquidity management. In contrast, gender and ethnicity show significant but opposing effects: female CFOs are associated with lower liquidity creation, and certain ethnic backgrounds correlate negatively. Meanwhile, CFO tenure does not exhibit a statistically significant impact. Results underscore the critical role of executive characteristics especially demographics in shaping financial intermediation in bank-based economies. The study contributes to the growing literature on corporate governance in emerging markets and offers practical implications for executive selection, diversity management, and liquidity strategy in the banking sector.
Keywords: CFO Characteristics, Liquidity Creation, Upper Echelon Theory, Indonesian Banks.
