Board diversity and corporate performance cases in Islamic Capital Market in Indonesia / Sutrisno and Maslinawati Mohamad

Dr. Drs. M.M., Sutrisno and Mohamad, Maslinawati (2016) Board diversity and corporate performance cases in Islamic Capital Market in Indonesia / Sutrisno and Maslinawati Mohamad. In: ICAM2019 – International Conference on Accounting and Management. Faculty of Accountancy, Universiti Teknologi MARA Puncak Alam, Selangor, p. 112. ISBN 978-967-17038-0-9

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Abstract

This study aims at examining the effect of board diversity on corporate performance among Indonesian companies that registered in the Islamic capital market. Board diversity consists of the existence of women, foreigners and different ethnicity on board, number of members on board of commissioners, and board of directors. Corporate performance was measured by return on assets (ROA). The sample of this research comprises 50 firms from Indonesian Stock Exchange during 2015 - 2017 that register under the Islamic capital market. This research used multiple regression analysis to test the hypotheses. We find that women on board and the foreign on board had a significant and positive influence on corporate performance. Similarly, the board of commissioners and the board of directors both have significant and positive influence on corporate performance, whereas the existence of different ethnic on board does not affect corporate performance. This research focuses on Islamic capital market in Indonesia. Therefore, the conclusions of this research apply on the companies in Indonesia that registered under Islamic capital market. This research provides evidence on the positive effect of the board diversity on firms performance in Indonesia.

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Item Type: Book Section
Creators:
Creators
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Dr. Drs. M.M., Sutrisno
sutrisno@uii.ac.id
Mohamad, Maslinawati
masli856@uitm.edu.my
Subjects: H Social Sciences > HD Industries. Land use. Labor > Corporations > Board of directors
H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Organizational behavior. Corporate culture
H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Organizational effectiveness. Performance measurement
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Accountancy
Page Range: p. 112
Item ID: 44258
Uncontrolled Keywords: Board diversity; Board of women; Board of foreign; Board of ethnic; Corporate performance; Islamic capital market
URI: https://ir.uitm.edu.my/id/eprint/44258

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44258

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