Title: BOARD DIVERSITY, BOARD STRUCTURE AND BANKING PERFORMANCE IN FIVE ASEAN COUNTRIES

Authors: MOHAMAD RIZALDY

Item Type : Thesis (Thesis)

Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

Bank boards play a crucial role in bank governance, and their role becomes even more crucial when other stakeholders, such as shareholders and creditors, experience difficulties in monitoring banking governance practices. Researchers and academics have not yet clearly demonstrated the relationship between board diversity and board performance effectiveness, particularly in the banking industry. This study also examines the impact of board diversity and board structure as company characteristics as control variables in the analysis model on bank performance. The objects used in this study were commercial banks in five Southeast Asian countries: the Philippines, Thailand, Singapore, Malaysia, and Indonesia, covering the period 2004 to 2017. The total sample size for the study period was 46 banks, resulting in 415 observations. The results of the regression test of board diversity and board structure on bank performance indicate that the variables of gender diversity, nationality diversity, and independent boards have a significant positive effect on the performance of commercial banks in the five ASEAN countries. This indicates that the presence of female board members and foreign board members provides experience development in bank management. In addition, the presence of independent boards in supervising/overseeing ensures that board member performance is in accordance with the strategic plan.

Keywords: board diversity, board structure, bank performance

Sources: http://repository.unair.ac.id/76823/