The Effect of Board Diversity on Financial Performance

Hypothesis test result (t test) can be seen from table below:

Seen from table above, the following result are obtained :

1. Gender does not significantly influence financial performance

2. Age does not significantly influence financial performance

3. Education has a significant influence financial performance

4. Naturalization has a significant influence financial performance

V. CONCLUSSION

The results of the research lead to the conclusion that neither the diversity of the board of directors' sex composition nor its age composition has any bearing on financial success. The outcomes of subsequent studies demonstrate that naturalization diversity and educational diversity have an impact on financial performance. The first and second hypotheses are therefore unproven, whereas the third and fourth hypotheses are.The limited availability of further in-depth information regarding the data to be acquired is one of the study's many constraints. In addition, this study only focuses on manufacturing firms in the food and beverage industry over a five-year period, from 2017 to 2021, and uses a small number of research samples, meaning that not all populations are researched because they do not fulfill the established criteria.

Suggestions that are utilized as input for some parties, such as for the companies that are the subject of the research, include the requirement that manufacturing firms in the food and beverage sector educate their board of directors on different cultures. The business should then inspire and motivate the board of directors to keep enhancing their professionalism, knowledge, and character. Then, in order for consumers of financial statements, particularly investors, to understand in greater detail how the makeup and makeup of the board of directors can affect the value of the firmThese findings may serve as a guide for future researchers to conduct additional research on a larger research object to be utilized as a research sample. Additionally, related research samples can be used with a longer period of observation, resulting in more data-intensive study outcomes.

References

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