Citation:

Gita Allya Rofi, Bernardus Yuliarto Nugroho. "Analysis of the Effect of Nationality Diversity of the Board of Commissionaire and Directors on Corporate's Dividend Payment Policy" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 106-116, 2023.

Abstract:

Diversity, particularly nationality diversity, is one of the most important concerns in board member makeup. The purpose of this study is to examine the impact of nationality diversity on the Board of Directors and Commissioners, as measured by the percentage of foreign board members, on dividend payment policy, as assessed by the company's dividend yield. The firms included in the Indonesia Stock Exchange's LQ45 index from 2010 to 2019 are the focus of this study. The dividend yield is used as a dependent variable in this study, and the percentage of foreign board members is used as an independent variable. This study also takes into account a number of other variables and controls. To evaluate the link between these factors analysed, regression was performed on the data using a fixed effect model. According to the findings of this study, the diversity of the board of commissioners has no meaningful effect on the company's dividend payment policy as evaluated by dividend yield. The diversity of the board of directors, on the other hand, has a considerable impact on dividend yield.

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Keywords:

Board diversity, Board of commissionaire, Board of directors, Dividend policy, Dividend yield.