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http://dx.doi.org/10.13106/jafeb.2020.vol7.no6.061

Impact of Corporate Governance Mechanisms on Corporate Social Responsibility Disclosure of Publicly-Listed Banks in Bangladesh  

JAHID, Md. Abu (Universitas Muhammadiyah Yogyakarta (UMY))
RASHID, Md. Harun Ur (Department of Economics & Banking, International Islamic University Chittagong (IIUC))
HOSSAIN, Syed Zabid (Department of Accounting and Information Systems, University of Rajshahi)
HARYONO, Siswoyo (Universitas Muhammadiyah Yogyakarta (UMY))
JATMIKO, Bambang (Universitas Muhammadiyah Yogyakarta)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.6, 2020 , pp. 61-71 More about this Journal
Abstract
The study examines the impact of corporate governance mechanisms, such as board characteristics on corporate social responsibility disclosure (CSRD). The data on CSRD items and board characteristics have been collected by content analysis of the annual reports of 30 publicly-listed banks in Bangladesh covering six years, from 2013 to 2018. More specifically, the directors' report, the chairman's statement, notes to the financial statement and CSR disclosure reports included in annual reports were used to collect the CSRD data. The empirical analysis applies the ordinary least square and the generalized method of moments. The results of the study have revealed that board size, board independence, female board member, and foreign directors have a significant positive impact on CSRD. By contrast, political directors and audit committee size have a negative impact on CSRD. Interestingly, accounting experts on boards ensure more CSRD as they curb the influence of politicians on the board. Thus, it is better to increase accounting experts and decrease politicians on the board. These findings provide valuable insights into the process of forming a suitable CSR policy by connecting the efforts of the board, government, and regulatory bodies to enhance the performance of banks to CSR as well as to CSRD.
Keywords
Corporate Social Responsibility Disclosure; Corporate Governance; Banking Industry; Bangladesh;
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Times Cited By KSCI : 4  (Citation Analysis)
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