Author(s): Widyahayu Warmmeswara Kusumastati
This research aims to know the impact of commissioner/director board member diversity on a company’s performance. The diversity includes diversity in age, gender, tenure, culture, education level, expertise (accounting and financial expertise, legal expertise, and business expertise), business and industry experiences. The research method of this research is as follow: first, this research constructed the Index of Commissioner Board Members Diversity and Index of Director Members Diversity. Each element in the Commissioner/Director Board Members Diversity Index (which are age diversity, gender diversity, etc.) is measured by Herfindahl Index. Herfindahl Index is used to express the diversity of board members characteristic. Then, each elements is combined together to construct Index of Commissioner Board Members Diversity and Index of Director Members Diversity. Second, this study employed multiple linear regression tests. The research was done on the Indonesian Stock Market during 2014-2018. The results showed that commissioner/director member’s diversity matters. Commissioner/director member diversity influences the company’s performance.