ABSTRACT
Risk-taking behaviour is one of the important things in running the company. It is needed especially when the company faces a difficult situation. However, excessive use may negatively affect the company. Risk-taking behaviour is based on risk preferences, which differ among companies as well as individuals. At management level, diversity may be one of the important factors that affect risk-taking behaviour. Previous literature review that studied about diversity in management such as diversity in gender, age, education, experience, etc., shows inconsistent results toward risk-taking behaviour. Based on this inconsistency, the author is interested to analyse the relationship among top management diversity as a decision maker in the company to risk-taking behaviour. This research is conducted to obtain empirical evidence on whether top management diversity is related to risk-taking behaviour. This research used regression on panel data from 333 Indonesian listed non-financial companies for a 3-year period from 2015 to 2017. Dependent variable of this research was risk-taking behaviour, while independent variables were top management diversity, including gender, age, nationality, education background, and experience. Control variables of this research were company size, profitability, and growth. The results showed that top management diversity in gender, age, nationality, education background, and experience were not significantly related to risk-taking behaviour. However, company characteristics such as size, profitability, and growth were significantly related to risk-taking behaviour.
