Board Diversity and Firm Performance: The Indonesian Evidence

By Salim Darmadi. 2010

342 citations recorded by the source corpus.

This paper examines the associations between diversity of board members and financial performance of the firms listed on the Indonesia Stock Exchange (IDX). Three demographic characteristics of board members—gender, nationality, and age—are used as the proxies for diversity. Using a sample of 169 listed firms, this study finds that both accounting and market performance have significant negative associations with gender diversity. Nationality diversity is found to have no influence on firm performance. In contrast, the proportion of young members is positively related to market performance, providing evidence that young people in the boardrooms are associated with improved financial performance.

Subfields: Accounting, Gender Studies

View Paper: https://www.semanticscholar.org/paper/3714b5b5626a798ba54bee1571bd04598fd2fc25

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Bambang Subroto
2. Lilik Handajani
3. T. Sutrisno
4. E. Saraswati
5. A. Arora

In Gender Studies

1. Bambang Subroto
2. Lilik Handajani
3. T. Sutrisno
4. E. Saraswati
5. A. Arora

Citations in the corpus

• Does Board Diversity Matter on Corporate Social Disclosure? An Indonesian Evidence (2014, methodology): “Older board showed extensive experience (Hermann & Data, 2005) and richer practices as a form of accumulation of skill based competencies (Darmadi, 2010).”
• Gender diversity in boardroom and its impact on firm performance (2021, background): “The prior literature (Darmadi, 2011; Iacoviello et  al., 2015; Ionascu et  al., 2018 and Mandalla, 2017) has also shown that women representation on boards has no significant impact on firm performance.”