Does Board Diversity Affect Company Value?
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. D...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Universitas Merdeka Malang
2021-05-01
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| Series: | Jurnal Keuangan dan Perbankan |
| Subjects: | |
| Online Access: | https://jurnal.unmer.ac.id/index.php/jkdp/article/view/5516 |
| _version_ | 1819060494767489024 |
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| author | Adam Zakaria Marsellisa Nindito Hafifah Nasution Hera Khairunnisa M. Edo S. Siregar |
| author_facet | Adam Zakaria Marsellisa Nindito Hafifah Nasution Hera Khairunnisa M. Edo S. Siregar |
| author_sort | Adam Zakaria |
| collection | DOAJ |
| description | 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 |
| first_indexed | 2024-12-21T14:27:53Z |
| format | Article |
| id | doaj.art-b11ebacb69f44a0e890a0a1527a68caa |
| institution | Directory Open Access Journal |
| issn | 1410-8089 2443-2687 |
| language | English |
| last_indexed | 2024-12-21T14:27:53Z |
| publishDate | 2021-05-01 |
| publisher | Universitas Merdeka Malang |
| record_format | Article |
| series | Jurnal Keuangan dan Perbankan |
| spelling | doaj.art-b11ebacb69f44a0e890a0a1527a68caa2022-12-21T19:00:35ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872021-05-0125229531010.26905/jkdp.v25i2.55162597Does Board Diversity Affect Company Value?Adam Zakaria0Marsellisa NinditoHafifah NasutionHera KhairunnisaM. Edo S. SiregarUniversitas Negeri JakartaDiversity 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.v25i2.5516https://jurnal.unmer.ac.id/index.php/jkdp/article/view/5516age, educational level, nationality, company value |
| spellingShingle | Adam Zakaria Marsellisa Nindito Hafifah Nasution Hera Khairunnisa M. Edo S. Siregar Does Board Diversity Affect Company Value? Jurnal Keuangan dan Perbankan age, educational level, nationality, company value |
| title | Does Board Diversity Affect Company Value? |
| title_full | Does Board Diversity Affect Company Value? |
| title_fullStr | Does Board Diversity Affect Company Value? |
| title_full_unstemmed | Does Board Diversity Affect Company Value? |
| title_short | Does Board Diversity Affect Company Value? |
| title_sort | does board diversity affect company value |
| topic | age, educational level, nationality, company value |
| url | https://jurnal.unmer.ac.id/index.php/jkdp/article/view/5516 |
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