2018
DOI: 10.24912/jm.v22i1.313
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How does board diversity affect the financial performance of commercial banks in indonesia? An inquiry

Abstract: This study analyzes board diversity and its effect on financial performance, as measured by age, gender, and nationality of board members using a sample of nine (9) commercial banks in Cikarang, West Java, Indonesia. The study uses multiple linear regression analysis. The results show that age and nationality have significant effect, while gender has insignificant effect on financial performance. However, simultaneously all of the independent variables significantly affect the Return on Asset, with the coeffic… Show more

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Cited by 8 publications
(9 citation statements)
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References 13 publications
(19 reference statements)
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“…In the results of financial statement analysis, the ratio of Return on Assets is the most commonly highlighted element, because this ratio shows the success of a company in generating profits . Return on Assets can measure the performance of a bank to generate profits, which can then be used to predict future profit levels for the survival of the company (Erasmus, 2010;Arquisola, Shella, & Hutabarat, 2018). The ratio of net income divided by total assets measures the return on total assets after interest and tax expense (McGowan & Stambaugh, 2012).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…In the results of financial statement analysis, the ratio of Return on Assets is the most commonly highlighted element, because this ratio shows the success of a company in generating profits . Return on Assets can measure the performance of a bank to generate profits, which can then be used to predict future profit levels for the survival of the company (Erasmus, 2010;Arquisola, Shella, & Hutabarat, 2018). The ratio of net income divided by total assets measures the return on total assets after interest and tax expense (McGowan & Stambaugh, 2012).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…An earlier study (see Bandura, 1992) suggests that when compared to men, women limit their career aspirations because they believe they have no capabilities and skills for such ventures. This an unfortunate case as study shows that females who take on ventures that demand assertiveness contribute highly to the performance of the firm (Arquisola, Shella, & Hutabarat, 2018). Entrepreneurial role models influence more women than men; thus, it is argued that to enhance attractiveness and desirability to become entrepreneurs, women need more entrepreneurial role models (Jennings & McDougald, 2007).…”
Section: Gendermentioning
confidence: 99%
“…These negative stereotypes affect women's decisions as they are expected to follow prevailing gender norms (Welter, Smallbone, Isakova, & Aculai, 2007). This means that they are expected to embrace motherhood and being a support to the husband and not as main bread winner (Arquisola, Shella, & Hutabarat, 2018).…”
Section: Gendermentioning
confidence: 99%
“…If the significant correlation result is <0.05 (5%), the regression equation contains heteroscedasticity (the variants of the residual are not homogeneous) (Priyatno, 2012) Multiple Regression Analysis is used by researchers, if the researcher intends to predict how the state (rise and fall) of the dependent variable (criterion), if two or more independent variables as predictor factors are manipulated (increase and decrease) (Sugiyono, 2013). The researcher analyzed multicollinearity using the tolerance value and variance inflation factor (VIF) (Arquisola, Shella, & Hutabarat, 2018). For hypothesis testing, the researcher used T-Test and F-test.…”
Section: Discussionmentioning
confidence: 99%