The impact of diversity and educational backgrounds of executive boards on Indonesian bank performance

Arisma Solicha Putri, Eka Mandala, Muhammad Farhan Hakim Harahap, Reyhan Satria Adinur, Sasi Waliyul Ahad, Dewi Hanggraeni

Abstract


This study identifies and analyzes the relationship between the diversity of the board of directors and the president director's educational background on the bank's financial performance. Based on 38 samples of Indonesian banks that have been listed on the Indonesia Stock Exchange. This study examines the static and dynamic relationship between the framework, which controls for the specific effects of each of the factors being tested. The results of this study indicate a significant influence and direction of negative correlation between gender diversity and citizenship diversity on bank financial performance. This study also shows a significant influence and direction of a positive correlation between the president director with an economic or business education background on the bank's financial performance. This study also discusses several managerial implications for banking companies and recommendations for the government in relation to the regulation of the board of directors of banks in Indonesia.

 

DOI : https://doi.org/10.26905/jkdp.v25i2.5154


Keywords


Bank Performance; Diversity; Board of Directors; Director's Education

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References


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DOI: https://doi.org/10.26905/jkdp.v25i2.5154

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Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

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