Humanities & Social Sciences Reviews eISSN: 2395-6518, Vol 7, No 4, 2019, pp 634-643 https://doi.org/10.18510/hssr.2019.7483 634 |www.hssr.in © Hasnawati et al. DO WOMEN ON BOARD, RISK MANAGEMENT, INVESTMENT IN NON- CORE BUSINESS AND STRATEGIC CHOICES AFFECT EARNING PERSISTENCE? - CASE IN INDONESIA Hasnawati1*, Etty Murwaningsari2, Harti Budi Yanti3, Suhendar4 1,2,3Accounting Department, Faculty of Economics and Business, Trisakti University, Jakarta, Indonesia, 4Accounting Department, Faculty of Economic and Islamic Business, The State Islamic Institute of Raden Intan Lampung, Indonesia. Email: 1*hasnawati@trisakti.ac.id, 2etty_nasser@yahoo.com, 3hartigunawan@ymail.com, 4suhendar@radenintan.ac.id Article History: Received on 25th July 2019, Revised on 31st August 2019, Published on 27th September 2019 Abstract Purpose of the study: The objectives of this research are (a) to determine association of gender diversity on boards of commissioners and boards of directors, risk management and infrastructure investment in non-core business to earnings persistence; (b) to find out whether strategy choices could moderate association of gender diversity of the board of commissioners and board of directors, risk management and infrastructure investment in non-core business to earnings persistence. Methodology: This research used multiple regression with five years of observation (2011-2015) and used IBM SPSS statistic version 22 to test the hypotheses. The sampling technique was purposive sampling. The results obtained 79 companies from the selection that met the criteria and hence, the total observations are 395 samples. Findings: This research found that gender diversity on board of directors had a positive effect on earning persistence and investment in non-core business had a negative impact on earning persistence. On the other hand, there was no direct effect of diversity gender on board of commissioners and risk management to earning persistence. However, when gender diversity on board of commissioners combined with the type of prospector strategy, it had a positive effect on earnings persistence, so did risk management. Novelty/Originality: This study has a practical contribution to shareholders, investors, board, and academics. This paper underlines that women should be courageous to take part in the business either as a board of commissioners or directors, and the company should provide wider opportunities for women. An investor should carefully with the companies’ strategic choice. This study also has an empirical contribution to filling the literature gap of factors that influence the earnings persistence beyond financial factors. There are limited researches that examined earning persistence, which includes risk management, investment in non-core business infrastructure and strategy as variables. Keywords: Gender Diversity, Board, Risk Management, Investment in Non-core Business, Strategy, Earning Persistence.
Oleh :
Harti Budiyanti
