Demographic Characteristics, Board Of Directors And Bank Characteristics On Risk

Abstract

This study aims to determine how the demographic characteristics of the board of directors and bank characteristics affect bank risk in Indonesia. The sample used included banking companies  from 2010 and 2015, which were selected using a purposive sampling method. The study employed a multiple regression analysis method.  Variables; Age, Female board members, Education level,  the citizenship of board members, CAR, firm size, NPL, and LDR on the dependent variable, bank risk. The results showed that age, the presence of female board members, the education level of the board, and firm size had a significant negative impact, NPL had a significant positive impact, and CAR, LDR, and the citizenship of board members had no significant impact on bank risk. This suggests that the demographic characteristics of the board of directors can influence decision-making and affect the risks borne by the bank.