295 Peer-Reviewed Article Jurnal Keuangan dan Perbankan Volume 25, Issue 2 2021, page.295 - 310 ISSN: 1410-8089 (Print), 2443-2687 (Online) DOI: 10.26905/jkdp.v25i2.5516 Does Board Diversity Affect Company Value? Adam Zakaria 1* , Marsellisa Nindito 2 , Hafifah Nasution 3 , Hera Khairunnisa 4 , M. Edo S. Siregar 5 1,2,3,4,5 Faculty of Economics, State University of Jakarta, Indonesia *Corresponding Author: adamzakaria@unj.ac.id Abstract Diversity in a board of directors has a strong relationship, so it provides higher-level management with a better monitoring system. This research aims to provide empirical proof about the influence of the diversity of the board of commissioners (BOC) and board of directors (BOD) on company value. Diversity is measured with age, educational background, and nationality. This quantitative research used data drawn from the annual reports of manufacturing companies listed on the Indonesian Stock Exchange (IDX). Panel- data regression was used to test whether the diversity of BOC and BOD significantly influenced company value. This research collected and analyzed data for 62 manufacturing companies for the 2015–2019 period, providing a total of 320 observations. Company size and leverage were applied as control variables, and the results show that age, educational background, and nationality of BOC and BOD have a significant influence on company value. Sensitivity analysis supports these results. This study benefits many parties such as BOD in monitoring the company’s operations, financial analysts, and investors in an investment decision. Keywords: Age; Educational Level; Nationality; Company Value 1. INTRODUCTION This research was conducted because the target of good corporate governance (GCG) being pursued in Indonesia has not yet been met. Otoritas Jasa Kuangan (OJK) encourages Indonesian companies to implement good corporate governance (GCG). This is because the implementation of GCG in Indonesia is lagging behind other countries in the ASEAN region. In the 2015 ASEAN Corporate Governance Awards organized by the ASEAN Capital Markets Forum (ACMF) in Manila, Philippines, only two Indonesian issuers were included in the list of 50 best issuers in ASEAN GCG. The two issuers are PT Bank Danamon Tbk and PT Bank CIMB Niaga Tbk. OJK said that one of the causes of poor corporate governance is the lack of exemplary GCG implementation, which reduces transparency and public accountability, which will reduce investor interest (Otoritas Jasa Keuangan., 2017). As a result, investors are not interested in investing in the company, which impacts the company's status as a going concern. To avoid similar problems, the