The Effect of Board of Directors' Diversity on Sustainability Reports with Enterprise Risk Management as a Moderation (Study on Non-Financial Sector Companies 2020-2023)

Anita Firna; Nadirsyah; Darwanis

doi:10.59890/ijfbm.v3i6.135

Authors

Anita Firna Syiah Kuala University
Nadirsyah Syiah Kuala University
Darwanis Syiah Kuala University

DOI:

https://doi.org/10.59890/ijfbm.v3i6.135

Keywords:

Enterprise Risk Management, Sustainability Report, Board Diversity

Abstract

This study aims to examine the effect of gender diversity and background diversity of the board of directors on sustainability reports with enterprise risk management as a moderator in non-financial sector companies listed on the Indonesia Stock Exchange (2020-2023). This study used a simple random sampling method, including companies on the Indonesia Stock Exchange with the Non-Financial Sector classification of 2020-2023, thus covering 89 companies. Secondary data used in this study came from annual reports and sustainability reports. Hypothesis testing was conducted through Moderated Regression Analysis (MRA). The results showed that gender diversity of the board of directors had a positive and significant effect on sustainability reports, and diversity of educational backgrounds had a positive effect on sustainability reports. Enterprise risk management had a positive effect on the relationship between the gender diversity of directors and sustainability reports, and enterprise risk management had an effect on the diversity of educational backgrounds and sustainability reports.

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