BOARD DIVERSITY AND INTELLECTUAL CAPITAL: THE MODERATING ROLE OF OWNERSHIP CONCENTRATION
Alfiyatul Qomariyah, Denise Daniella Hidajat, Sultan Syah

Universitas Airlangga

Abstract

This study examines the moderating effect of ownership concentration in the relationship between board diversity and intellectual capital. This study uses a quantitative method with an explanatory approach. The sample used in this research consists of 311 manufacturing companies listed on the Indonesian Stock Exchange from 2017-2021. The results demonstrate that board diversity positively affects intellectual capital and that ownership concentration (dispersed ownership) strengthens this relationship. This study contributes to the academicians, practitioners, and government that in an increasingly fierce global competition, the capability of a diverse board is needed to exploit the company^s resources in the most optimal way possible to survive. The findings also show that dispersed ownership of a company supports the board^s performance, enabling them to work more effectively. Therefore, managers need to consider having dispersed ownership in their companies. Furthermore, the government may create a formal rule regarding that proportion.

Keywords: intellectual capital, board diversity, ownership concentration, dispersed ownership

Topic: Management accounting