BOARD DIVERSITY AND PROFITABILITY IN SMALL-CAP COMPANIES AT INDONESIA STOCK EXCHANGE
Sri Hasnawati
Faculty of Economic and Business Lampung University
Abstract
The objective of the study is to find out the influence of board diversity and profitability on sales growth as a control variable in small capitalization companies at the Indonesian Stock Exchange. The research sample is determined by ranking the largest capitalization to smallest capitalization. The companies with a capitalization value of Rp. 1 Billion and under are considered as small-cap companies. Using the Solvin method, a number of 47 companies as research samples was obtained. Observation was conducted during the period of 2013-2017. The research model uses multiple regression with profitability as the dependent variable. The results of the study indicate that the age of the board directors affects the profitability of small-cap companies at a 95% confidence level. Furthermore, at the confidence level of 90%, females in the board of commissioners have a positive effect on the profit of small-cap companies.
Keywords: Board diversity, profitability, small-cap companies, Indonesia Stock Exchange
Topic: Manajemen Keuangan