Board of directors and CSR disclosure in Indonesian banking industry: Does education matter

Abstract

We examine the relationship between the educational attainment of board chairperson and CSR disclosure in Indonesian banking industry. The underlying theory borrows agency theory positing that the characteristics of board chairperson matters in predicting the overall board performance in fulfilling monitoring responsibilities. Our dataset consists of 86 banks during 2009-2014. Univariate analysis shows that the majority of board chairpersons hold an undergraduate degree. Multivariate analyses find that educational attainment is positively related to CSR disclosure. Further tests reveal that the effects of educational attainment are contingent to the rank of awarding universities and the independence of board chairperson. However, MBA/accounting/economics educational background is insignificantly related to CSR disclosure.

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