The Impact of Top-Tier Management Diversity on Banks' Bottom Line Employing Operational Performance

Q3 Economics, Econometrics and Finance

WSEAS Transactions on Business and Economics Pub Date : 2024-03-29 DOI:10.37394/23207.2024.21.71

Zaenal Abidin, R. Prabantarikso, Muhammad Akbar, Amabel Nabila

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Abstract

The purpose of this study is to examine the impact of diversity (age, gender, experience, and education) on the bottom line of banks through operational performance in commercial banks in Indonesia. Profitability, as measured by Return on Assets (ROA), is used to approximate the bank's bottom line. Meanwhile, the bank's operational performance is measured by the Operational Efficiency Ratio (OER), Net Interest Margin (NIM), and Non-Performing Loan (NPL). This study employs a purposive selection technique with an observation period of 53 banks' annual banking reports from 2021-2022 Commercial Banks. The data analysis methods used are descriptive statistical analysis, moderation regression analysis, and hypothesis testing. The outcome of the bottom line is significantly impacted by Top-tier Management or TTM (age), which has a considerable impact on operational performance. The bottom line is also significantly impacted by TTM diversity, which is mediated by operational performance. The bottom line is significantly impacted by operational performance as well. Gender, experience, and educational diversity in TTM are not significant.

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高层管理多元化对银行底线运营绩效的影响

本研究的目的是通过印度尼西亚商业银行的经营业绩，考察多元化（年龄、性别、经验和教育程度）对银行底线的影响。以资产回报率（ROA）衡量的盈利能力是银行底线的近似值。同时，银行的运营绩效由运营效率比（OER）、净利息收益率（NIM）和不良贷款率（NPL）来衡量。本研究采用目的性选择技术，观察期为 2021-2022 年商业银行的 53 份银行年报。采用的数据分析方法包括描述性统计分析、调节回归分析和假设检验。底线的结果受高层管理人员或 TTM（年龄）的显著影响，TTM 对运营绩效有相当大的影响。底线还受到 TTM 多样性的重大影响，而 TTM 多样性又是以运营绩效为中介的。底线也受到运营绩效的重大影响。TTM 的性别、经验和教育多样性并不重要。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

WSEAS Transactions on Business and Economics Economics, Econometrics and Finance-Economics and Econometrics

CiteScore

1.50

自引率

0.00%

发文量

180

期刊介绍： WSEAS Transactions on Business and Economics publishes original research papers relating to the global economy. We aim to bring important work using any economic approach to a wide international audience and therefore only publish papers of exceptional scientific value that advance our understanding of finances. The research presented must transcend the limits of case studies, while both experimental and theoretical studies are accepted. While its main emphasis is economic, it is a multi-disciplinary journal and therefore its content mirrors the diverse interests and approaches of scholars involved with the international dimensions of business, economics, finance, history, law, marketing, management, political science, and related areas. It also welcomes scholarly contributions from officials with government agencies, international agencies, and non-governmental organizations.