Does an environmentally minded board of directors affect green banking disclosure?

Abstract

The aim of this study is to examine the impact of an environmentally minded board of directors on green banking disclosure in Southeast Asian countries. It covers banking companies that published annual reports during the period 2016-2022. This study employs multiple linear regression to test the hypothesis. This study found that companies with high environmentally minded board members have high green banking disclosure. Additional analysis found that the use of various control variables showed consistency in the effect of the independent variables on the dependent variable. The implications of the results of this research are that regulators can formulate policies that direct companies to appoint environmentally minded members to their boards of directors. Companies that have a commitment to green bank disclosure must consider and prioritize support for the existence of environmental commissioners both within the scope of management and governance. This study explains green banking disclosure using specific green-related variables, namely the environmentally minded board of directors. Some previous studies in predicting green banking disclosure were less specific in choosing independent variables or using general variables.