The Relationship between Board Demographic Diversity and Firm Performance
Keywords:
Demographic Diversity, Board of Director, Firm PerformanceAbstract
This research aims to study the relationship between board diversity (women directors, directors’ age, foreigner directors, board independence and CEO duality) on firm performance (return on assets, return on equity and Tobin’s Q). By making the use of 101 samples of listed companies from 2013 to 2017 which excluded financial sectors and real estate funds, the group of undergoing operation rehabilitation and market for alternative investment (mai) that are in the Stock Exchange of Thailand (SET). The collecting data are from an online database provided by SET Market Analysis and Reporting Tool (SET SMART). The data were analyzed by the econometric analysis program for testing all of the hypothesis. This study found that only two variables have a positive relationship on firm performance which is the women directors while measuring by return on equity and the director’s age when measured by Tobin’s Q. However, the foreigner directors, board independence and CEO duality have no relationship toward firm performance which measured by return on asset, return on equity and Tobin’s Q.
References
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