The Impact of Board Demographic Diversity on the Financial Performance of Banks in South Sudan

Deskripsi

This study examines how the age, gender, and ethnicity of the Board of Directors (BOD) affect the financial performance of banks in South Sudan. Based on the theoretical framework of the study, demographic diversity has the potential to have a positive, negative, or neutral effect on financial performance. The dependent variable, financial performance, is measured using Return on Assets (ROA) and Net Interest Margin (NIM). Independent variables include age, race, and gender diversity. Age diversity is measured by the coefficient of variation, while ethnic diversity is represented as a dummy variable, and the percentage of women on the board of directors is used to assess gender diversity. Data regarding board profiles was collected from the bank's checklists and financial records for a five-year period from 2018 to 2023. (2017–18–20/23 Data analysis was conducted using the fixed effect regression method, with model selection between random and fixed effects carried out through the Hausman test. The findings show that demographic diversity in terms of age, gender, or ethnicity does not affect financial performance. As a result, the empirical findings do not validate the hypothesis that age, gender, and ethnicity differences affect financial performance