PPIA Doctoral Promotion FEB UI Examines the Diversity Index of the Board of Commissioners/Directors: Construction, Determinants and Its Impact on Profit and Risk Management of the Company
Nino Eka Putra – Public Relations FEB UI
DEPOK – (12/8/2021) The Postgraduate Program in Accounting (PPIA) Faculty of Economics and Business, Universitas Indonesia, held an online open session for the Doctoral promotion of Widyahayu Warmmeswara Kusumastati, on Thursday (12/8/2021). The writing of the dissertation by the candidate was entitled “The Diversity Index of the Board of Commissioners/Directors: Construction, Determinants and Its Impact on Profit and Risk Management of the Company”.
The Doctoral Promotion Session was chaired by Prof. Dr. Budi Frensidy, with supervisors, Dr. Sylvia Veronica Siregar (Promoter), Dr. Dwi Martani (Co-Promoter 1), Desi Adhariani, Ph.D. (Co-Promoter 2). As the test team, Prof. Sidharta Utama, Ph.D. (Chief Examiner), Dr. Ancella Anitawati Hermawan, Dr. Eliza Fatima, Dr. Djoni Hartono, and Dr. Sabam Hutajulu.
According to Promovenda Widyahayu Warmmeswara Kusumastati, this study aims to examine the determinants and impacts of the diversity of the board of commissioners/directors. The diversity of the board of commissioners/directors includes diversity in gender, culture, tenure, education level, expertise, and occupation. The study also constructs the Board of Commissioners’ Diversity Index (IKDK) and the Directors’ Diversity Index (IKD).
The study was conducted using multiple linear regression on companies listed on the Indonesia Stock Exchange for 2014 – 2018, by comparing whether the constructed IKDK is better than the index constructed in previous studies. The results prove that the IKDK is proven to be significantly better in improving company performance, compared to the diversity index of the board of commissioners based on Bernile et al. (2018).
The next finding is that IKD reduces earnings management. However, this study cannot prove that IKDK and IKD have an effect on company risk. Then, the multinational nature of the company is proven to be a determinant of IKD, and the company’s life cycle is a determinant of IKDK.
The Leadership Council of the open session for the doctoral promotion decided that, Widyahayu Warmmeswara Kusumastati was declared to have graduated with the title of Satisfactory and succeeded in obtaining the 85th Doctoral degree awarded from FEBUI in Accounting Science. Congratulations to Dr. Widyahayu Warmmeswara Kusumastati! (hjtp)
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