Board Diversity and Firm Risk-Taking with Board Independence as Moderation Variable Delavilanda Baby Efa (a*), Dr. Rahmat Setiawan, SE., MM., CFP (b)
Faculty of Economics and Business, Universitas Airlangga, Indonesia
Abstract
This study aims to determine the effect of board diversity on firm risk taking in 56 companies in the tourism sector consisting of the tourism and recreation industry and transportation listed on the Indonesia Stock Exchange and the moderating effect of board independence on the influence of board diversity on firm risk taking. This study used a purposive sampling method with a multiple linear regression analysis model. The data in this study was obtained from the company^s annual report published in the 2017-2021 period. The results of this study show that board diversity has a significant negative effect on firm risk-taking. The moderating variable of board independence weakens the negative influence of board diversity on firm risk-taking.
