Does Board Diversity Affect Company Value?

Adam Zakaria, Marsellisa Nindito, Hafifah Nasution, Hera Khairunnisa, M. Edo S. Siregar

Abstract


Diversity in a board of directors has a strong relationship, so it provides higher-level management with a better monitoring system. This research aims to provide empirical proof about the influence of the diversity of the board of commissioners (BOC) and board of directors (BOD) on company value. Diversity is measured with age, educational background, and nationality. This quantitative research used data drawn from the annual reports of manufacturing companies listed on the Indonesian Stock Exchange (IDX). Panel- data regression was used to test whether the diversity of BOC and BOD significantly influenced company value. This research collected and analyzed data for 62 manufacturing companies for the 2015–2019 period, providing a total of 320 observations. Company size and leverage were applied as control variables, and the results show that age, educational background, and nationality of BOC and BOD have a significant influence on company value. Sensitivity analysis supports these results. This study benefits many parties such as BOD in monitoring the company’s operations, financial analysts, and investors in an investment decision.

 

DOI : https://doi.org/10.26905/jkdp.v25i2.5516


Keywords


Age, Educational Level, Nationality, Company Value

Full Text:

PDF

References


Aida, R. N., dan Rahmawati, E. 2015. Pengaruh Modal Intelektual dan Pengungkapannya Terhadap Kinerja Perusahaan. Jurnal Akuntansi & Investasi, 16(2), 96–109. https://doi.org/10.18196/JAI-2015.0035

Carter, D. A., B. J. Simkins & W. G. Simpson (2003). Corporate governance, board diversity, and firm value. Financial Review, 38(1), 33-53. https://doi.org/10.1111/1540- 6288.00034

Cheng, L. T. W., Chan, R. Y. K., &Leung, T. Y. (2010). Management demography and corporate performance: evidence from China. International Business Review, 19(3), 261–275. https://doi.org/10.1016/j.ibusrev.2009.12.007

Cox, Jr., Taylor. (1991). The multicultural organization. Academy of Management Executive, 5(2), 34-47. www.jstor.org/stable/4165006

Darmadi, Salim. (2011). “Board diversity and firm performance: the Indonesian evidence.” Corporate Ownership and Control 9(1 F), 524–39.

Dewi, Gede Krisna & Ayu Aryista Dewi. (2016). Pengaruh diversitas dewan komisaris dan direksi pada nilai perusahaan pada perusahaan sektor keuangan yang terdaftar di bursa efek Indonesia tahun 2009-2013. E-Jurnal Akuntansi Universitas Udayana,16(1), 812–836. https://ojs.unud.ac.id/index.php/Akuntansi/article/view/21673

Dewi, Aminar Sutra, Desfriana Sari, & Henryanto Abaharis. (2018). Pengaruh karakteritik dewan komisaris terhadap kinerja perusahaan manufaktur di BEI. Jurnal Benefita, 3(3), 445-454. https://doi.org/10.22216/jbe.v3i3.3530

Ehikioya, Benjamin. (2009). Corporate governance structure and firm performance in developing economies: evidence from Nigeria. Research Scholar based at the School of Management, 9(3), 231-243. https://doi.org/10.1108/14720700910964307

Ekananda, Mahyus. (2016). Analisis ekonometrika data panel. Jakarta: Mitra Wacana Media.

Erhardt, N. L., Werbel, J. D., & Shrader, C. B. (2003). Board of director diversity and firm financial performance. Iowa State University Digital Repository, 11(2), 102–111. https://doi.org/10.1111/1467-8683.00011

Evans, Jeanet Christanty, & Ely Kartikaningdyah. (2019). Pengaruh corporate social responsibilty terhadap kinerja keuangan perusahaan. Journal of Applied Managerial Accounting 1(1), 37–44. https://doi.org/10.30871/jama.v1i1.1237

Frijns, Bart, Olga Dodd, & Helena Cimerova. (2016). The impact of cultural diversity in corporate boards on firm performance. Journal of Corporate Finance, 41, 521-541. https://doi.org/10.1016/j.jcorpfin.2016.07.014

Grosvold, J., Brammer, S., & Rayton, B. (2007). Board diversity in the United Kingdom and Norway: an exploratory analysis. Business Ethics, 16(4), 344. https://doi.org/10.1111/j.1467-8608.2007.00508.x

Gujarati, Damodar N & Dawn C. Porter. 2015. Dasar-dasar ekonometrika. Edisi 5 Buku 2. Jakarta: salemba empat.

Gultom, M. C., & F. Syarif. (2008). Pengaruh kebijakan leverage, kebijakan deviden, dan earning per share terhadap nilai perusahaan. Jurnal Akuntansi, 47.

Hassan, Rohail & Maran Marimuthu. (2016). Corporate governance, board diversity, and firm value: examining large companies using panel data approach. Economics Bulletin,36(3), 1737–1750. http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16- V36-I3-P170.pdf

Herrmann, P., & Datta, D. K. (2005). Relationships between top management team characteristics and international diversification: an empirical investigation. British Journal of Management, 16(1), 69–78. https://doi.org/10.1111/j.1467- 8551.2005.00429.x

Hidayat, Anwar. (2014). Penjelasan metode analisis regresi data panel. https://www.statistikian.com/2014/11/regresi-data-panel.html. Diakses 03 Maret 2020.

Jindal, V., & Jaiswall, M. 2015. Board diversity and firm performance influenced by ownership concentration: evidence from India, Working Paper Series, (765), 1–21

Kawedar, Andika Prima Ertanta Tarigan & Warsito. (2020). Pengaruh pengungkapan keanekaragaman hayati dalam laporan keberlanjutan terhadap nilai perusahaan dengan tata kelola perusahaan sebagai variabel moderasi. Diponegoro Journal of Accounting, 9(4), 1–13.

Kesaulya, Feby Astrid & Novita Febriany. (2018). Pengaruh diversitas kebangsaan board of director dan kepemilikan blockholders terhadap nilai perusahaan. Kompartemen: Jurnal Ilmiah Akuntansi, XVII(2), 60-68. https://doi.org/10.30595/kompartemen.v16i2.2797

Kristina, I Gusti Agung Rai, & I Dewa Nyoman Wiratmaja. (2018). Pengaruh board diversity dan intellectual capital pada nilai perusahaan. E-Jurnal Akuntansi, 22, 2313.

Kusumastuti, Ratih Dyah, Dirk Pieter Van Donk, & Ruud Teunter. (2016). Crop-related harvesting and processing planning: a review. International Journal of Production Economics, 174: 76–92. http://dx.doi.org/10.1016/j.ijpe.2016.01.010.

Kusumastuti, Sari, Supatmi, & Perdana Sastra. (2007). Pengaruh board diversity terhadap nilai perusahaan dalam perspektif corporate governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98. http://puslit2.petra.ac.id/ejournal/index.php/aku/article/view/16819

Lehman, C.M. & Dufrene, D.D. (2008), Business communication, 15th edition, Thomson south-western, mason.

Lestari, Nanik, & Rosi Candra Sapitri. (2016). Pengaruh intellectual capital terhadap nilai perusahaan. Jurnal Akuntansi, Ekonomi dan Manajemen Bisnis, 4(1), 28–33. https://doi.org/10.30871/jaemb.v4i1.81

Molenkamp, J. (2015). Board diversity and firm performance: the Dutch evidence. 5th IBA bachelor thesis conference, Netherlands., 1–13. https://doi.org/10.1007/s13398-014- 0173-7.2

Nugroho, Wawan Cahyo & Fadlil Abdani. (2017). Pengaruh profitabilitas, dividend policy, leverage, dan keputusan investasi terhadap nilai perusahaan konstruksi di BEI. El- Muhasaba, 8(1), 104-122. https://doi.org/10.18860/em.v8i1.4965

(3), 1737–1750. http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16- V36-I3-P170.pdf

Herrmann, P., & Datta, D. K. (2005). Relationships between top management team characteristics and international diversification: an empirical investigation. British Journal of Management, 16(1), 69–78. https://doi.org/10.1111/j.1467- 8551.2005.00429.x

Hidayat, Anwar. (2014). Penjelasan metode analisis regresi data panel. https://www.statistikian.com/2014/11/regresi-data-panel.html. Diakses 03 Maret 2020.

Jindal, V., & Jaiswall, M. 2015. Board diversity and firm performance influenced by ownership concentration: evidence from India, Working Paper Series, (765), 1–21

Kawedar, Andika Prima Ertanta Tarigan & Warsito. (2020). Pengaruh pengungkapan keanekaragaman hayati dalam laporan keberlanjutan terhadap nilai perusahaan dengan tata kelola perusahaan sebagai variabel moderasi. Diponegoro Journal of Accounting, 9(4), 1–13.

Kesaulya, Feby Astrid & Novita Febriany. (2018). Pengaruh diversitas kebangsaan board of director dan kepemilikan blockholders terhadap nilai perusahaan. Kompartemen: Jurnal Ilmiah Akuntansi, XVII(2), 60-68. https://doi.org/10.30595/kompartemen.v16i2.2797

Kristina, I Gusti Agung Rai, & I Dewa Nyoman Wiratmaja. (2018). Pengaruh board diversity dan intellectual capital pada nilai perusahaan. E-Jurnal Akuntansi, 22, 2313.

Kusumastuti, Ratih Dyah, Dirk Pieter Van Donk, & Ruud Teunter. (2016). Crop-related harvesting and processing planning: a review. International Journal of Production Economics, 174: 76–92. http://dx.doi.org/10.1016/j.ijpe.2016.01.010.

Kusumastuti, Sari, Supatmi, & Perdana Sastra. (2007). Pengaruh board diversity terhadap nilai perusahaan dalam perspektif corporate governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98. http://puslit2.petra.ac.id/ejournal/index.php/aku/article/view/16819

Lehman, C.M. & Dufrene, D.D. (2008), Business communication, 15th edition, Thomson south-western, mason.

Lestari, Nanik, & Rosi Candra Sapitri. (2016). Pengaruh intellectual capital terhadap nilai perusahaan. Jurnal Akuntansi, Ekonomi dan Manajemen Bisnis, 4(1), 28–33. https://doi.org/10.30871/jaemb.v4i1.81

Molenkamp, J. (2015). Board diversity and firm performance: the Dutch evidence. 5th IBA bachelor thesis conference, Netherlands., 1–13. https://doi.org/10.1007/s13398-014- 0173-7.2

Nugroho, Wawan Cahyo & Fadlil Abdani. (2017). Pengaruh profitabilitas, dividend policy, leverage, dan keputusan investasi terhadap nilai perusahaan konstruksi di BEI. El- Muhasaba, 8(1), 104-122. https://doi.org/10.18860/em.v8i1.4965131-142. http://sibresearch.org/uploads/3/4/0/9/34097180/riber_6-s1_sp_b17- 146_131-142.pdf

Sukamulja, Sukmawati. (2004) Good corporate governance di sektor keuangan: dampak GCG terhadap kinerja perusahaan (kasus di bursa efek Jakarta), Benefit Jurnal Manajemen dan Bisnis, 8(I), 1-25. https://doi.org/10.23917/benefit.v8i1.1193

Syafitri, Tria, Nila Firdausi Nuzula, & Ferina Nurlaily. (2018). Pengaruh good corporate governance. Jurnal Administrasi Bisnis, 56(1), 118-126. administrasibisnis.studentjournal.ub.ac.id 1

Wijaya, Putu Cindy & Bambang Suprasto. (2015). Pengaruh persebaran dewan two tier pada nilai perusahaan sektor keuangan. E-Jurnal Akuntansi Universitas Udayana, 12(3), 722-734. https://ojs.unud.ac.id/index.php/Akuntansi/article/view/12257

Winoto, P. J., & Supatmi. (2014). Pengaruh diversitas kebangsaan board of director terhadap nilai perusahaan, Research Information System, 1–10.

W ongso, A manda. 2013. “Pengaruh kebijakan dividen, struktur kepemilikan, dan kebijakan hutang terhadap nilai perusahaan dalam perspektif teori agensi dan teori signaling. Jurnal Ilmiah Mahasiswa Manajemen 1(5), 1–6.

Zainal, Dalilawati & Zulkifli, Norhayah & Saleh, Zakiah. (2013). Corporate board diversity in Malaysia: a longitudinal analysis of gender and nationality diversity. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(1), 136- 148. www.hrmars.com




DOI: https://doi.org/10.26905/jkdp.v25i2.5516

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

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

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: -
Email: [email protected]

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0