Journal of Business & Economic Policy

The Influence of Board Members’ Diversity Characteristics on Accounting Conservatism of Service Firms in Infrastructure, Utilities, and Transportation Sectors on the Indonesia Stock Exchange
Dini Adyunita, Bernadette Robiani, Tertiarto Wahyudi

Abstract
This research was aimed to examine the influence of board members’ diversity characteristics of gender, education level, age, and nationality on accounting conservatism. The study was analyzed by using panel data regression analysis method. The samples of this research were58 service firms in infrastructure, utilities, and transportation sectors registered on the Indonesia Stock Exchange in 2017-2019. The result of the study found out that board members’ diversity characteristics simultaneously gave a significant influence on accounting conservatism measured by accrual or market basis. Partially, diversity of gender, diversity of nationality, leverage and firm size have a significant effect on accounting conservatism measured by accrual basis. Meanwhile, the diversity of education level and age did not give any significant influence on accounting conservatism measured by accrual basis. Besides, there was a significant influence of diversity of gender and leverage on accounting conservatism measured by market size, and there was no significant influence on the diversity of education level, age, nationality, and firm size on accounting conservatism measured by market size. This implication is useful for investors to obtain additional information related to investment decisions. The agency is directly related to the promote of board diversity which improves the quality of accounting and transparency of financial reporting. Creditors will consider in making credit decisions to companies. The company can be used in decision making by considering the demographic diversity of the board. Academics can contribute to the development of science, especially in business and finance.

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