How does board diversity affect the financial performance of commercial banks in indonesia? An inquiry

Maria Jacinta Arquisola, Kezia Shella, Erny Hutabarat

Abstract


This study analyzes board diversity and its effect on financial performance, as measured by age, gender, and nationality of board members using a sample of nine (9) commercial banks in Cikarang, West Java, Indonesia. The study uses multiple linear regression analysis.  The results show that age and nationality have significant effect, while gender has insignificant effect on financial performance. However, simultaneously all of the independent variables significantly affect the Return on Asset, with the coefficient determinant in this research is 20.8%.


Keywords


Board diversity, firm performance, age, gender, nationality.

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DOI: http://dx.doi.org/10.24912/jm.v22i1.313

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