Abstract

The purpose of this study was to analyze the influence of gender diversity, board of directors, board of commissioner, independent commissioner, and intellectual capital on firm performance. The population in this study is all consumer goods industry sector companies listed on the Indonesia Stock exchange for the period 2014-2018. Sampling in this study using purposive sampling, as many as 40 companies were selected as samples with a total 200 observation. The analysis method used in this research is regression analysis with fixed effect model approach and hypothesis testing. The result showed that the board of directors, the proportion of independent commissioner, and intellectual capital have positve and significant effect on firm performance. Menwhile, gender diversity and the board of commissioner have no effect on firm performance. The advice provide is for investors and companies to pay attention and conside the variables that effect on firm performance such as the board of directors, the proportion of independent commissioners and intellectual capital as a consideration to assess the firm performance. As forfurther research, the gender diversity variable can be measured using other proxies such as the blau index or so on. Firthermore, researcher are also expected to add other independent variables that affect on firm performance such as political connection, firm size, and manajerial ownership

Highlights

  • The increasing development of technology and information has an impact on increasing competition and innovation in terms of economy and business (Noorkhaista & Sari, 2017)

  • Causal relationships can be predicted by researchers, so researchers can state the classification of variable causes, namely gender diversity, board of directors, board of commissioners, independent commissioners and intellectual capital to the tied varaibel that is the performance of the firm

  • Selection of estimated models is determined through chow test, hausman test, and lagrange multiplier (LM) testChow test is used to choose the best model between Common Effect Model (CEM) and fixed effect model (FEM)

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Summary

Introduction

The increasing development of technology and information has an impact on increasing competition and innovation in terms of economy and business (Noorkhaista & Sari, 2017). The firm performance is one aspect of the firm success that is very important (Izah & Ardiansari, 2019). Assessment of the firm performance can be done using financial and non-financial measures. If based on the firm goal to make a profit, almost every firm performs its performance measurement using the financial aspect (Izah & Ardiansari, 2019). One of them is by looking at the firm ability to generate profit (Fathonah, 2018). The firm profit is an indicator of the firm ability to fulfill its obligations to funders and as a step to create corporate value (Wardoyo & Veronica, 2013). To take measurements of the firm performance is usual ly done by looking at the profitability ratio. One of them is the Return On Asset (ROA) ratio

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