WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 21, 2024
The Impact of Top-Tier Management Diversity on Banks' Bottom Line Employing Operational Performance
Authors: , , ,
Abstract: The purpose of this study is to examine the impact of diversity (age, gender, experience, and education) on the bottom line of banks through operational performance in commercial banks in Indonesia. Profitability, as measured by Return on Assets (ROA), is used to approximate the bank's bottom line. Meanwhile, the bank's operational performance is measured by the Operational Efficiency Ratio (OER), Net Interest Margin (NIM), and Non-Performing Loan (NPL). This study employs a purposive selection technique with an observation period of 53 banks' annual banking reports from 2021-2022 Commercial Banks. The data analysis methods used are descriptive statistical analysis, moderation regression analysis, and hypothesis testing. The outcome of the bottom line is significantly impacted by Top-tier Management or TTM (age), which has a considerable impact on operational performance. The bottom line is also significantly impacted by TTM diversity, which is mediated by operational performance. The bottom line is significantly impacted by operational performance as well. Gender, experience, and educational diversity in TTM are not significant.
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Keywords: Diversity, Top-tier Management, Bottom line bank, Operational performance, Strategic Management, Indonesia
Pages: 850-864
DOI: 10.37394/23207.2024.21.71