BOARD DIVERSITY, CORPORATE SOCIAL RESPONSIBILITY, AND FINANCIAL PERFORMANCE: AN EMPIRICAL STUDY ON CONSUMER NON-CYCLICAL FIRMS

Kemala Ainun Nizmah; Maulida  Nurul Innayah; Wida Purwidianti; Fatmah Bagis

doi:10.29303/distribusi.v12i2.483

Authors

Kemala Ainun Nizmah Universitas Muhammadiyah Purwokerto
Maulida Nurul Innayah Universitas Muhammadiyah Purwokerto
Wida Purwidianti Universitas Muhammadiyah Purwokerto
Fatmah Bagis Universitas Muhammadiyah Purwokerto

DOI:

https://doi.org/10.29303/distribusi.v12i2.483

Keywords:

Board Diversity, Corporate Social Responsibility, Financial Performance

Abstract

This study aimed to examine the effect of board diversity on financial performance of consumer non-cyclicals companies listed on the Indonesia Stock Exchange. This study also examined the mediating effect of Corporate Social Responsibility on the relationship between board diversity and financial performance which was limited in previous studies. The sampling technique used was purposive sampling which obtained 136 observations. The results showed that female directors, foreign directors, and directors with economic education have a negative effect on financial performance. Female directors and foreign directors have a positive effect on CSR, while directors with economic education have a negative effect on CSR. CSR has a positive effect on financial performance. However, based on the sobel test results, CSR is not able to mediate the relationship between board diversity on financial performance. This research has contributed for consumer non-cyclicals companies to consider the role of board diversity, because this research found that they are able to increase CSR disclosure and firm performance.

Downloads

Download data is not yet available.

References

Adams, M., & Baker, P. L. (2021). Does Boardroom Nationality Affect The Performance Of UK Insurers? British Accounting Review, 53(5), 100923. https://doi.org/10.1016/j.bar.2020.100923

Afifah, H. N., & Syafruddin, M. (2021). Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan Dengan Risiko Sebagai Variabel Mediasi. Diponegoro Journal of Accounting, 10, 1–14.

Afiska, L., Handayani, D. F., & Serly, V. (2021). Pengaruh Karakteristik Dewan Pengawas Syariah (DPS) Terhadap Kinerja Keuangan Bank Umum Syariah Yang Terdaftar pada Otoritas Jasa Keuangan (OJK) Indonesia. Jurnal Eksplorasi Akuntansi, 3(4), 784–798.

Al Fadli, A., Sands, J., Jones, G., Beattie, C., & Pensiero, D. (2019). Board Gender Diversity And CSR Reporting: Evidence from Jordan. Australasian Accounting, Business and Finance Journal, 13(3), 29–52. https://doi.org/10.14453/aabfj.v13i3.3

Alamsyah, F., & Madyan, M. (2021). Pengaruh Board Characteristics Proporsi Woman on Board Pada Kinerja Keuangan. JMBI UNSRAT (Jurnal Ilmiah Manajemen Bisnis Dan Inovasi Universitas Sam Ratulangi)., 8(1), 319–331. https://doi.org/10.35794/jmbi.v8i2.34663

Aldrich, H. E., & Pfeffer, J. (1976). Environments of Organizations. Annual Review of Sociology, 2(1), 79–105. https://doi.org/10.1146/annurev.so.02.080176.000455

Ang, R., Shao, Z., Liu, C., Yang, C., & Zheng, Q. (2022). The Relationship Between Csr And Financial Performance And The Moderating Effect Of Ownership Structure: Evidence From Chinese Heavily Polluting Listed Enterprises. Sustainable Production and Consumption, 30, 117–129. https://doi.org/10.1016/j.spc.2021.11.030

Azam, M., Khalid, M. U., & Zia, S. Z. (2019). Board Diversity And Corporate Social Responsibility: The Moderating Role Of Shariah Compliance. Corporate Governance (Bingley), 19(6), 1274–1288. https://doi.org/10.1108/CG-01-2019-0022

Beji, R., Yousfi, O., Loukil, N., & Omri, A. (2021). Board Diversity and Corporate Social Responsibility: Empirical Evidence from France. Journal of Business Ethics, 173(1), 133–155. https://doi.org/10.1007/s10551-020-04522-4

Chijoke-Mgbame, A. M., Boateng, A., & Mgbame, C. O. (2020). Board Gender Diversity, Audit Committee And Financial Performance: Evidence From Nigeria. Accounting Forum, 44(3), 262–286. https://doi.org/10.1080/01559982.2020.1766280

CNBC. (2019). Tenaga Kerja Asing di RI Meroket 38%, Terbanyak dari China. CNBC Indonesia. https://www.cnbcindonesia.com/news/20190908075511-4-97843/tenaga-kerja-asing-di-ri-meroket-38-terbanyak-dari-china

Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward A Stewardship Theory Of Management. Academy of Management Review, 22(1), 20–47. https://doi.org/10.5465/amr.1997.9707180258

Delis, M. D., Gaganis, C., Hasan, I., & Pasiouras, F. (2017). The Effect Of Board Directors From Countries With Different Genetic Diversity Levels On Corporate Performance. Management Science, 63(1), 231–249. https://doi.org/10.1287/mnsc.2015.2299

Dwi Rima Putri, I., Mariya Waharini, F., Hakim Purwantini, A., Ekonomi dan Bisnis, F., & Muhammadiyah Magelang, U. (2021). Pengaruh Gender, Usia, dan Kebangsaan Asing terhadap Kinerja Keuangan Perusahaan. ACE│Accounting Research Journal, 1(1), 17–30. https://journal.feb.unipa.ac.id/index.php/ace

Eliya, S., & Suprapto, Y. (2022). Pengaruh Keberagaman Gender terhadap Kinerja Keuangan pada Perusahaan Manufaktur Barang Konsumsi Publik di Indonesia. Jurnal Manajemen Dan Bisnis, 5(2), 23–30. https://doi.org/https://doi.org/10.37531/sejaman.v5i1.2024

EmadEldeen, R., Elbayoumi, A. F., Basuony, M. A. K., & Mohamed, E. K. A. (2021). The Effect Of The Board Diversity On Firm Performance: An Empirical Study On The UK. Corporate Ownership and Control, 18(3, special issue), 337–347. https://doi.org/10.22495/cocv18i3siart8

Estélyi, K. S., & Nisar, T. M. (2016). Diverse Boards: Why Do Firms Get Foreign Nationals On Their Boards? Journal of Corporate Finance, 39, 174–192. https://doi.org/10.1016/j.jcorpfin.2016.02.006

Fan, J., Wang, H., Xu, Z., & Zhao, F. (2022). Board Gender Diversity and Firm Performance: Evidence from China. Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022). https://doi.org/10.2991/aebmr.k.220307.425

Fernández-Temprano, M. A., & Tejerina-Gaite, F. (2020). Types Of Director, Board Diversity And Firm Performance. Corporate Governance (Bingley), 20(2), 324–342. https://doi.org/10.1108/CG-03-2019-0096

Garanina, T., & Aray, Y. (2021). Enhancing Csr Disclosure Through Foreign Ownership, Foreign Board Members, And Cross-Listing: Does It Work In Russian Context? Emerging Markets Review, 46, 100754. https://doi.org/10.1016/j.ememar.2020.100754

García-Meca, E., García-Sánchez, I.-M., & Martínez-Ferrero, J. (2015). Board Diversity And Its Effects On Bank Performance: An International Analysis. Journal of Banking & Finance, 53, 202–214. https://doi.org/10.1016/j.jbankfin.2014.12.002

Ghozali, I. (2016). Aplikasi Analisis Multivariete: Dengan Program IBM SPSS 23. Badan Penerbit Universitas Diponegoro.

Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 (9th ed.). Badan Penerbit Universitas Diponegoro.

Hadya, R., & Susanto, R. (2018). Model Hubungan Antara Keberagaman Gender, Pendidikan Dan Nationality Dewan Komisaris Terhadap Pengungkapan Corporate Social Responsibility. Jurnal Benefita, 3(2), 149. https://doi.org/10.22216/benefita.v3i2.3432

Hartmann, C. C., & Carmenate, J. (2021). Does Board Diversity Influence Firms’ Corporate Social Responsibility Reputation? Social Responsibility Journal, 17(8), 1299–1319. https://doi.org/10.1108/SRJ-04-2020-0143

Hillman, A. J., Withers, M. C., & Collins, B. J. (2009). Resource Dependence Theory: A Review. Journal of Management, 35(6), 1404–1427. https://doi.org/10.1177/0149206309343469

Innayah, Arofah, R. U., & Pratama, B. C. (2023). Does Social Responsibility Affect Performance of Islamic Bank in Indonesia? the Role of Board Diversity. Management Analysis Journal, 12(2), 232–241. http://maj.unnes.ac.id

Innayah, M. N., & Pratama, B. C. (2021). Board Diversity and Its Effects on Firm Performance and Risk: A Study in Banking Firms. Journal of Accounting and Investment, 22(1), proofreading. https://doi.org/10.18196/jai.v22i1.10005

Innayah, M. N., Fuad, M., & Pratama, B. C. (2021). Intellectual Capital and Firm Performance: The Role of Women Directors. Jurnal Akuntansi Dan Pajak, 22(1), 142. https://doi.org/10.29040/jap.v22i1.2299

Innayah, M. N., Pratama, B. C., & Hanafi, M. M. (2020). The Effect of Intellectual Capital towards Firm Performance and Risk with Board Diversity as a Moderating Variable: Study in ASEAN Banking Firms. Jurnal Dinamika Manajemen, 11(1), 27–38. https://doi.org/10.15294/jdm.v11i1.21487

Innayah, M. N., Wibowo, H., Mukarromah, S., & Pratama, B. C. (2022). Political Connection and Performance in Indonesian Banking Firms: The Role of Board Gender Diversity. International Journal of Academic Research In Accounting, Finance and Management Sciences, 12(2), 317–333.

Irmayani, N. W. D. (2021). Dampak Pandemic Covid 19 Terhadap Reaksi Pasar Pada Sektor Consumer Goods Industry Di Bursa Efek Indonesia. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 12, 1127. https://doi.org/10.24843/eeb.2020.v09.i12.p05

Khan, I., Khan, I., & Saeed, B. bin. (2019). Does Board Diversity Affect Quality Of Corporate Social Responsibility Disclosure? Evidence from Pakistan. Corporate Social Responsibility and Environmental Management, 26(6), 1371–1381. https://doi.org/10.1002/csr.1753

Khayati, A., Sari, R. D. P., & Giovanni, A. (2022). Nilai Tambah Modal Manusia dan Keberlangsungan Bisnis Perusahaan Sektor Consumer Non-Cyclicals. Borobudur Management Review, 2(2), 169–189. https://doi.org/10.31603/bmar.v2i2.7377

Lestari, N., & Lelyta, N. (2019). Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan. Equity, 22(1), 1–11. https://doi.org/10.34209/equ.v22i1.897

Liu, G., Xie, Z., & Li, M. (2023). Does Economics And Management Education Make Managers More Cautious? Evidence from R&D of Chinese Listed Firms. Research in International Business and Finance, 64, 101847. https://doi.org/10.1016/j.ribaf.2022.101847

Livnat, J., Smith, G., Suslava, K., & Tarlie, M. (2021). Board Tenure And Firm Performance. Global Finance Journal, 47, 100535. https://doi.org/10.1016/j.gfj.2020.100535

Løyning, T. (2023). Regulating For Gender Equality In Business: The Law On Gender Quotas And The Network Of Interlocking Directorates In Norway, 2008–2016. Review of Social Economy, 81(3), 493–519. https://doi.org/10.1080/00346764.2021.1901139

Manyaga, C. B., Muturi, W., & Oluoch, O. (2020). Board Gender Diversity and Financial Performance of Commercial Banks in Kenya. Journal of Finance and Accounting, 8(1), 1–10. https://doi.org/10.12691/jfa-8-1-1

Marlyn, M., & Jin, T. F. (2022). Perbedaan Gender, Karakteristik Perusahaan, dan Corporate Social Responsibility Disclosure. E-Jurnal Akuntansi Tsm, 2(2), 917–930. http://jurnaltsm.id/index.php/EJATSM

Moreno-Ureba, E., Bravo-Urquiza, F., & Reguera-Alvarado, N. (2022). An Analysis Of The Influence Of Female Directors On Environmental Innovation: When Are Women Greener? Journal of Cleaner Production, 374(April), 133871. https://doi.org/10.1016/j.jclepro.2022.133871

Moser, D. V., & Martin, P. R. (2012). A Broader Perspective on Corporate Social Responsibility Research in Accounting. The Accounting Review, 87(3), 797–806. https://doi.org/10.2308/accr-10257

Nathaniel, M. A., Jessica, S., Retno, N., Vania, Y., & Gunawan, P. (2020). Pengaruh Karakteristik Ceo Terhadap Tingkat Performa Corporate Social Responsibility (Csr) Perusahaan Di Indonesia. Jurnal Akuntansi, 8(1), 31–50. https://doi.org/10.26460/ja.v8i1.1194

Nguyen, T. T. T., & Nguyen, C. H. L. (2020). Corporate Social Responsibility And Firm Financial Performance: A Literature Review. Science & Technology Development Journal - Economics - Law and Management, 4(3), First. https://doi.org/10.32508/stdjelm.v4i3.579

Nugrahani, W. P. (2021). Pengaruh Board Gender, Dewan Komisaris Independen, Komite Audit Dan Kepemilikan Institusional Terhadap Kinerja Keuangan Perusahaan (Studi Kasus pada Perusahaan Sub Sektor Bank yang Terdaftar di Bursa Efek Indonesia Periode 2013-2017). Jurnal Bisnis, Ekonomi, Dan Sains, 1(1), 59–68. https://journal.widyatama.ac.id/index.php/bes/article/view/652

Oh, W. Y., Chang, Y. K., & Jung, R. (2019). Board Characteristics And Corporate Social Responsibility: Does Family Involvement In Management Matter? Journal of Business Research, 103(February 2017), 23–33. https://doi.org/10.1016/j.jbusres.2019.05.028

Orazalin, N. (2019). Corporate Governance And Corporate Social Responsibility (Csr) Disclosure In An Emerging Economy: Evidence From Commercial Banks Of Kazakhstan. Corporate Governance (Bingley), 19(3), 490–507. https://doi.org/10.1108/CG-09-2018-0290

Pasaribu, P., Masripah, M., & Mindosa, B. (2019). Does Gender Diversity in the Boardroom Improve Firm Performance? Evidence from Indonesia. Economics and Finance in Indonesia, 65(1), 1. https://doi.org/10.47291/efi.v65i1.597

Pereira, V. M. M., & Filipe, J. A. C. B. (2022). Board Members’ Educational Background and Financial Performance: Evidence from Eurozone Banks. Journal of Central Banking Theory and Practice, 11(3), 203–227. https://doi.org/10.2478/jcbtp-2022-0030

Pondrinal, M. (2021). Pengaruh Pengungkapan Corporate Social Responsibility (CSR) Terhadap Kinerja Keuangan Di Perusahaan Yang Go Public. Jurnal Ekobistek, 8(1), 51–59. https://doi.org/10.35134/ekobistek.v8i1.33

Pratama, M. Z. F., & Indarto, M. R. (2021). Pengaruh Profitabilitas, Pertumbuhan Perusahaan, Pertumbuhan Penjualan dan Struktur Asset Terhadap Struktur Modal Pada Perusahaan Sektor Industri Barang Konsumsi yang Terdaftar di Bursa Efek Indonesia. Riset Akuntansi Dan Keuangan Indonesia, 2(2), 217–232. http://journal.stimykpn.ac.id/index.php/cb/article/view/262

Putri, A. S., Mandala, E., Harahap, F. H., Adinur, R. S., & Hanggraeni, D. (2021). The Impact Of Diversity And Educational Backgrounds Of Executive Boards On Indonesian Bank Performance. Jurnal Keuangan Dan Perbankan, 25(2), 450–465. https://doi.org/10.26905/jkdp.v25i2.5154

Rahmawardani, D. D., & Muslichah, M. (2020). Corporate Social Responsibility Terhadap Manajemen Laba Dan Kinerja Perusahaan. Jurnal Riset Akuntansi Kontemporer, 12(2), 52–59. https://doi.org/10.23969/jrak.v12i2.2251

Ramadiana, L. D., Purnamasari, I., & Lhutfi, I. (2023). Studi Respon Pasar Pada Perusahaan Sektor Konsumen Primer (Consumer Non-Cyclical) Yang Terdaftar Di Bursa Efek Indonesia Pada Tahun 2018-2021 Levina. Journal of Finance, Entrepreneurship, and Accounting Education Research, 2(1), 27–36.

Ranitawati, E. (2021). Analisis Keberagaman Direksi Terhadap Kinerja Perusahaan (Study Empiris Pada Perusahaan Manufaktur yang Listing di Bursa Efek Indonesia). Liability, 03(1), 01–35.

Razak, B., & Helmy, H. (2020). Pengaruh Dewan Direksi Wanita, Dewan Komisaris Wanita Dan Kualitas Pengungkapan Corporate Social Responsibility Terhadap Manajemen Laba. Jurnal Eksplorasi Akuntansi, 2(4), 3434–3451. https://doi.org/10.24036/jea.v2i4.294

Rita Septiani, K. P., & Made Arie Wahyuni. (2023). Pengaruh Corporate Social Responsibility, Ukuran Perusahaan, Dan Solvabilitas Terhadap Kinerja Keuangan Pada Perusahaan Manufaktur Sektor Barang Konsumsi Yang Terdaftar Di BEI Periode 2018-2021. Vokasi : Jurnal Riset Akuntansi, 12(2), 65–73. https://doi.org/10.23887/vjra.v12i2.61598

Roika, R., Salim, U., & Sumiati, S. (2019). Pengaruh Keragaman Dewan Direksi Terhadap Kinerja Keuangan Perusahaan. IQTISHODUNA, 15(2), 115–128.

Rokhilla Haris Lubis, N., Syahyunan, S., & Fauzan Azhmy, M. (2021). Pengaruh Keberagaman Dewan Direksi Terhadap Kinerja Keuangan Pada Perusahaan Manufaktur. Inovatif: Jurnal Ekonomi, Manajemen, Akuntansi, Bisnis Digital Dan Kewirausahaan, 1(2), 107–125. https://doi.org/10.55983/inov.v1i2.7

Sa’adah, L., & Sudiarto, E. (2022). Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan Dengan Ukuran Perusahaan Sebagai Variabel Moderating. Jurnal Manajemen Dirgantara, 15(1).

Saidu, S. (2019). Ceo Characteristics And Firm Performance: Focus On Origin, Education And Ownership. Journal of Global Entrepreneurship Research, 9(1). https://doi.org/10.1186/s40497-019-0153-7

Shatnawi, A., Al-Gasawneh, J. A., Mansur, H., & Alresheedi, A. (2022). The Effect Of Board Nationality And Educational Diversity On Csr Performance: Empirical Evidence From Australian Companies. Uncertain Supply Chain Management, 10(4), 1467–1478. https://doi.org/10.5267/j.uscm.2022.6.009

Siregar, F. Y., & Khamimah. (2021). Corporate Social Responsibility ( CSR ) Pada Perusahaan Manufaktur Yang Terdaftar Di BEI Tahun 2018-2019. Management & Accountancy in Practice Journal, 2(1), 54–69. http://jurnal.untagsmg.ac.id/index.php/sa/article/view/2102

Sujarweni, W. (2015). Metode Penelitian Bisnis & Ekonomi. Pustaka Baru.

Tahir, S. H., Ullah, M. R., Ahmad, G., Syed, N., & Qadir, A. (2021). Women In Top Management: Performance Of Firms And Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 87. https://doi.org/10.3390/JOITMC7010087

Tang, S., & Sari, A. W. (2022). Pengaruh Dewan Direksi Wanita Pada Pelaporan Tanggung Jawab Sosial Perusahaan 2017 -2021. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(3), 1441–1450. https://doi.org/10.32670/fairvalue.v5i3.2188

Thoomaszen, S. P., & Hidayat, W. (2020). Keberagaman Gender Dewan Komisaris dan Direksi terhadap Kinerja Perusahaan. E-Jurnal Akuntansi, 30(8), 2040. https://doi.org/10.24843/eja.2020.v30.i08.p11

Unilever. (2023). Pencapaian Equity, Diversity & Inclusion Yang Diraih Unilever Indonesia Dan Brand-Nya. Unilever Indonesia. https://www.unilever.co.id/news/2023/pencapaian-equity-diversity-inclusion-yang-diraih-unilever-indonesia-dan-brandnya/

Wang, Y., Yao, C., & Kang, D. (2019). Political Connections And Firm Performance: Evidence From Government Officials’ Site Visits. Pacific-Basin Finance Journal, 57, 101021. https://doi.org/10.1016/j.pacfin.2018.05.003

Wardhani, D. K., & Supratiwi, W. (2023). Characteristics Of A Good Board Of Directors For Indonesian Soes Performance. Journal of Indonesian Economy and Business, 38(1), 1–18. https://doi.org/10.22146/jieb.v38i1.4410

Yang, P., Riepe, J., Moser, K., Pull, K., & Terjesen, S. (2019). Women Directors, Firm Performance, And Firm Risk: A Causal Perspective. Leadership Quarterly, 30(5), 101297. https://doi.org/10.1016/j.leaqua.2019.05.004

Yusof, S. M., Nordin, N. A., Jais, M., & Sahari, S. (2019). Impact of Board Diversity on Corporate Social Responsibility (CSR) on Malaysian Public Listed Companies. International Journal of Academic Research in Business and Social Sciences, 9(7), 1049–1069. https://doi.org/10.6007/ijarbss/v9-i7/6209

Zaidan, M. A., Innayah, M. N., Tubastuvi, N., & Hidayah, A. (2023). Corporate Social Responsibility Practise in Indonesia: The Role of Board Diversity and Corporate Governance. Indonesian Journal of Business Analytics, 3(5), 1631–1650. https://doi.org/10.55927/ijba.v3i5.5434