The Effect of Diversity of The Board of Commissioners on Bank Credit Risk in Indonesia

Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 09

Abstract

This study aims to determine: (1) the effect of board age diversity on bank credit risk, (2) the effect of board education diversity on bank credit risk, (3) the effect of board gender diversity on bank credit risk, and (4) the effect of board nationality diversity on bank credit risk. The population in this study are banking sector companies listed on the Indonesia Stock Exchange (IDX) in the 2014-2018 period. The sampling technique in this study used census sampling with a total sample of 37 banks. Data is collected from the bank's annual report. Fixed effect period regression analysis was used to test the hypothesis of this study. The results of this study indicate that: (1) board age diversity has a significant negative effect on bank credit risk, (2) board education diversity has a significant negative effect on bank buying credit risk, (3) board gender diversity has no significant effect on risk bank credit, (4) board nationality diversity has no significant effect on bank credit risk.

Authors and Affiliations

Tri Kartika Pertiwi, Fani Khoirotunnisa, G. Oka Warmana

Keywords

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  • EP ID EP705763
  • DOI 10.47191/jefms/v4-i9-24
  • Views 54
  • Downloads 0

How To Cite

Tri Kartika Pertiwi, Fani Khoirotunnisa, G. Oka Warmana (2021). The Effect of Diversity of The Board of Commissioners on Bank Credit Risk in Indonesia. Journal of Economics, Finance and Management Studies, 4(09), -. https://europub.co.uk/articles/-A-705763