Do Diversity of Directors Improve Market Performance
DOI:
https://doi.org/10.18502/kss.v3i14.4303Abstract
Purpose: The main aims of this study to examine whether diversity of directors will improve market performance in emerging market, especially in Indonesia. Methodology: A number of variables associated to diversity of directors are gender, ethnic, and skill diversity of directors. Panel data analysis is used for 90 companies listed in Indonesia from 2013-2016 periods. Findings: Ethnic diversity of directors appears to influence Indonesian company market performance negatively when using Tobin’s Q as a proxy. Originality: This research has an original benefit to corporate governance aspect by investigating the association between diversity of directors and market performance in Continental European system.
Keywords: corporate governance, diversity, market performance
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