Jurnal Siasat Bisnis
Vol 23, No 2 (2019)

Board diversity and firm performance: cases in sharia capital market of Indonesia

Sutrisno Sutrisno (Universitas Islam Indonesia, Yogyakarta, Indonesia)
Maslinawati Mohamad (Universiti Teknologi MARA, Selangor, Malaysia)



Article Info

Publish Date
11 Nov 2019

Abstract

The purpose of this study is to examine the effect of board diversity on corporate performance. In this paper, board diversity refers to the composition of board members consisting of women, foreign, ethnicity, size of the board of commissioner, and size board of directors. Whereas, corporate performance is measured by return on assets (ROA). The sample size of the study uses 48 publicly listed firms in the Sharia capital market of Indonesia for the observation period between 2015 and 2017. The results show that firms with women and foreigner in board had a significant and positive association with corporate performance. Similarly, the board of commissioners and the board of directors also had a significant and positive association with firm performance. However, the existence of the ethnic boards does not affect firm performance.

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Journal Info

Abbrev

JSB

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences

Description

Jurnal Siasat Bisnis (JSB) is a peer review journal published twice a year (January and July) by Management Development Centre (MDC)-Department of Management, Faculty of Economics, Universitas Islam Indonesia. JSB) addresses the broad area of management science and its applications in industry and ...