THE EFFECT OF EDUCATIONAL BACKGROUND, EDUCATION LEVEL AND BOARD SIZE ON FINANCIAL PERFORMANCE IN CONVENTIONAL BANKS IN INDONESIA

Abstract

This study aims to analyze the influence of educational background, educational level, and board size on financial performance in conventional banks in Indonesia. Financial performance is measured using Return on Assets (ROA) as the main indicator. This study employs a quantitative method and secondary data obtained from the annual reports of conventional banks registered with the Financial Services Authority (OJK) during the period 2019-2023. The analysis method used is panel data regression to test the relationship between independent and dependent variables more accurately by considering time and individual dimensions. The results indicate that educational background, educational level, and board size significantly influence bank financial performance. These findings suggest that educational quality and board structure play a crucial role in enhancing the financial performance of banking institutions. This study implies that management and stakeholders should give greater consideration to educational aspects and board composition in strategic decision-making.

Keywords: Educational Background, Educational Level, Board Size, Financial Performance, Conventional Banks, ROA, Panel Data Regression.