BOARD DIVERSITY AND CORPORATE RISK: EVIDENCE FROM INDONESIAN LISTED MANUFACTURING COMPANIES IN 2016-2019

Recently, board diversity has become an essential part of the modern business environment. Its awareness
rises since it affects how the board carries out its duties, the boards efficacy, and the risk-taking behavior,
leading to companies outcomes and value. Therefore, the researchers conducted the study to know the impact
of board diversity, precisely, the Board of Commissioner and corporate risk with the diversity of gender, age,
nationality, education, and tenure. Board size, market to book ratio, tangibility, leverage, and profitability were
used as control variables. This study focused on Indonesias manufacturing companies listed in the IDX during
2016-2019, with 300 sample data collected from 75 companies. The data gathered were further analyzed using
multiple linear regression. As a result, nationality diversity, tangibility, leverage, and profitability significantly
affect corporate risk. Inversely, diversity of gender, age, education, tenure, the board size, and market-to-book
ratio do not significantly affect corporate risk.