Open AccessCan Board of Directors Diversity and Monitoring Intensity Improve Bank Profitability?
Author(s) -
Septian Yudha Kusuma,
Sudarman Sudarman,
Vita Arumsari
Publication year - 2021
Publication title -
performance
Language(s) - English
Resource type - Journals
eISSN - 2615-8094
pISSN - 1829-6467
DOI - 10.20884/1.jp.2021.28.01.3697
Subject(s) - profitability index , stock exchange , accounting , business , audit committee , diversity (politics) , panel data , gender diversity , independence (probability theory) , index (typography) , on board , audit , composite index , corporate governance , finance , statistics , economics , econometrics , political science , engineering , mathematics , computer science , world wide web , law , aerospace engineering
The purpose of this study to analyze the effect of board of directors diversity and monitoring intensity to profitability. Board of directors diversity measured by a composite index of gender, age, education, citizenship, and independence of the board of directors. Meanwhile, monitoring intensity measured by the composition of audit quality, number of meetings, and the number of committee. The objects are banks listed in the Indonesia Stock Exchange period of 2015-2017 with a panel data regression. Selected samples was 40 banks and 120 observation. The results showed that board of directors diversity had a significant negative on profitability, this result provoke a gap to the previous research. While monitoring intensity is positive significant to profitability. Some practical and implications will be discussed in this study.