Authors : Heyvon Herdhayinta, Grahita Chandrarin, Sumiyana and Anwar Fitrianto
Abstract: The study investigates board diversity and its influence on financial performance. The main purpose is to examine influence of nationality and gender diversity on financial performance according to Tobin’s Q of 50 largest Asia-Pacific companies according to Forbes magazine. Data analysis is performed using Ordinary Least Square (OLS) and Two-Stage Least Square (2SLS) regressions analysis. The results show that gender diversity of board member has positive influence on financial performance. It is found that having female member in board of director provides various perspectives in decision making and leads to better financial performance. However, nationality of board member contributes no significant influence on financial performance. In addition, it is also emphasized that an economic objective should not be the only reason for increasing board diversity.
Heyvon Herdhayinta, Grahita Chandrarin, Sumiyana and Anwar Fitrianto, 2017. The Influence of Board Diversity on Financial Performance: An Empirical Study of Asia-Pacific Companies Using Regression Models. International Business Management, 11: 89-99.