The Effect of the Board of Directors and Environmental Performance on Financial Performance

Abstract

This study aimed to determines the impact of board and environmental performances on financial performances. The population of this survey is the Islamic bank for the period 2016-2021. The sampling method used is purposive sampling, so the sample are 73 companies that meet the criteria. The data analysis method used is multiple regression analysis using SPSS programs. The results of this survey show that the age diversity of the board has a positive impact on financial performance, but it is not important. Board education does not affect financial performance. Environmental performance does not affect financial performance.

Board Size Moderates the Influence of Research and Development (R&D) Intensity on Financial Performance

“…The board size in a company is considered a determining factor in the proper functioning of the BOD (Vu et al, 2018). The BOD is responsible for supervising, managing and directing the company towards its goals and protecting the interests of shareholders, including the company's financial performance (Sari et al, 2022). The board of directors' achievements in managing the company in the interests of shareholders can be seen through financial performance.…”