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Board Members' Education And Firm Performance: Evidence From A Developing Economy, Salim Darmadi
Board Members' Education And Firm Performance: Evidence From A Developing Economy, Salim Darmadi
Salim Darmadi
Empirical studies focusing on the influence of the educational backgrounds of CEO and board members on firm performance are scarce in the literature. This study makes a contribution by addressing such an issue in the context of Indonesia, a developing country that adopts a two-tier board system. Using annual reports to collect information on the educational qualification of board members, I employ a sample consisting of 160 firms listed on the Indonesia Stock Exchange (IDX). I use four measures of educational qualification in this study, namely postgraduate degrees, degrees obtained from prestigious domestic universities, degrees obtained from developed countries, and …
Do Women In Top Management Affect Firm Performance? Evidence From Indonesia, Salim Darmadi
Do Women In Top Management Affect Firm Performance? Evidence From Indonesia, Salim Darmadi
Salim Darmadi
This paper investigates the relationship between gender diversity on management boards and financial performance of Indonesian listed companies. We conduct cross-sectional regression analysis based on a sample comprising 92.4 percent of public firms listed on the Indonesia Stock Exchange (IDX). We find that the representation of female top executives is negatively related to both accounting and market performance, suggesting that female representation is not associated with improved level of performance. From correlation analysis, our results also reveal that smaller firms, which tend to be family-controlled, are more likely to have higher proportion of female members on management boards. This implies …
Board Diversity And Firm Performance: The Indonesian Evidence, Salim Darmadi
Board Diversity And Firm Performance: The Indonesian Evidence, Salim Darmadi
Salim Darmadi
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.