Jurnal Manajemen Atma Jaya
Vol 13, No 2 (2016): Jurnal Manajemen

EDUCATION VERSUS EXPERIENCE: WHICH MATTERS MORE FOR INDONESIAN BANK DIRECTORS?

Pangestu, Stevanus ( Faculty of Economics & Business Atma Jaya Catholic University of Indonesia Jakarta)



Article Info

Publish Date
01 Nov 2016

Abstract

The purpose of this paper is to assess the effects of board of directors’ education and experience on firm financial performance. Based on the cross-sectional analysis of the involved 30 publicly-listed Indonesian banks, it is found that both directors’ education and experience positively influence bank profitability, measured with Return on Assets ratio. The results of this study supports Hambrick and Mason’s Upper- Echelon theory. Based on the research findings, Indonesian banks are recommended to take experience and education into account when organizing board members—with more emphasis on the former due to the more impact it has. Furthermore, banks should also be encouraged to invest more in their human capital by facilitating further education of its board members.Keywords: Board Of Directors, Education, Experience, Firm Performance, Upper Echelon

Copyrights © 2016






Journal Info

Abbrev

JM

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Manajemen memuat informasi hasil kegiatan penelitian pemikiran konseptual di bidang ilmu manajemen. Sarana komunikasi ilmiah ini diterbitkan oleh Fakultas Ekonomi Universitas Katolik Indonesia Atma Jaya Jakarta. Terbit perdana 2004 dengan siklus terbit 2 kali setahun yaitu pada bulan Mei dan ...