ASIA’S BOARD DIVERSITY: DOES DIRECTOR DIVERSITY ON BOARD AFFECT FIRM PERFORMANCE?

Abstract

Some countries in Europe have passed laws that require every company to have a woman on the company's board of directors. Asia still does not have legislation as in some countries in Europe, so women's board office companies in Asia are small or nonexistent. In this study, board diversity was measured by 4 variables; these are gender diversity, age of director, director's educational background, and outside director, with board size and firm size as control variables, while firm performance is measured by using return on asset. The population in this study was companies included in Forbes Asia's 50 Best Big Public Companies of 2014-2016. The results show that board diversity does not affect the performance of the company.