This study analyzes board diversity and its effect on financial performance. The main purpose of the study is to analyze whether age, gender, nationality, education, and board composition as measured by age less than 55 years old, female, foreign board members, undergraduate degree board members, and commissioner while financial performance as measured by Return on Asset using sample 38 commercial banks in Indonesia year 2018.

The problem stated in this research was board diversity is a phenomenon that minority are likely to be concerned in society life included in Indonesia and also board diversity has been an important indicator for the financial performance. In Indonesia, still there is no guidelines regarding rules for board composition. This problem will be explored further. The results showed that nationality and education have significant effect; while age, gender, and board composition have insignificant effect towards Return on Asset. Simultaneously, all of the independent variables significantly affected the financial performance with 21.5% result of adjusted R square.

Keywords: Return on Asset, age, gender, nationality, education, board composition, board diversity

This study analyzes board diversity and its effect on financial performance. The main purpose of the study is to analyze whether age, gender, nationality, education, and board composition as measured by age less than 55 years old, female, foreign board members, undergraduate degree board members, and commissioner while financial performance as measured by Return on Asset using sample 38 commercial banks in Indonesia year 2018.
The problem stated in this research was board diversity is a phenomenon that minority are likely to be concerned in society life included in Indonesia and also board diversity has been an important indicator for the financial performance. In Indonesia, still there is no guidelines regarding rules for board composition. This problem will be explored further. The results showed that nationality and education have significant effect; while age, gender, and board composition have insignificant effect towards Return on Asset. Simultaneously, all of the independent variables significantly affected the financial performance with 21.5% result of adjusted R square.

Keywords: Return on Asset, age, gender, nationality, education, board composition, board diversity

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