Diversity Among the Board of Commissioners and Stock Return: A Study on the Influence of Nationality, Gender and Educational Background

Abstract

This study analyzes the influence of board nationality, diversity, gender, and educational background as independent and dependent variables on stock returns. Two control variables were used namely, the audit quality and company age, with secondary data obtained in the form of financial statements and annual reports from 2011 to 2017. The samples in this study were 266 companies listed on the Indonesia Stock Exchange. The results showed that the board of commissionaires’ nationality diversity and audit quality (as control variable) have negative and significant effect on stock returns, while gender, educational background, and company age do not.