Institutional directors and corporate social responsibility disclosure in the Jordanian banks

• Main Authors: Ghabayen, Mohammad Ahid, Mohamad, Nor Raihan, Ahmad, Norsia
• Format: Conference or Workshop Item
• Language: English
• Published: 2015
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/17584/1/287-ICAS2015%20287-296.pdf; http://repo.uum.edu.my/17584/; http://www.icas.my/index.php/proceedings/3-icas-2015-proceedings/128-institutional-directors-and-corporate-social-responsibility-disclosure-in-the-jordanian-banks
• Institution: Universiti Utara Malaysia

This study examines the impact of institutional directors on the level of corporate social responsibility disclosure (CSRD) in the Jordanian banks.A comprehensive CSR checklist, consisting of 100 items, is designed to collect the data from 147 observations from 2004 to 2013.The descriptive analysis shows, relatively, a low level of CSRD with a mean of 46%. In addition, institutional directors occupy 46.4% of the banks’ board seats. The analysis shows that 11% of the institutional directors are serving as CEOs, 22.5% are independent institutional directors and 65.5% are non-independent non-executive directors.Results from multiple regression analysis show that institutional directors, has a negative and non-significant impact on the level of CSRD.However, we break down the institutional directors to two groups based on their status; institutional independent directors and institutional non-independent non-executive directors.The results show that the two groups have positive significant impacts on the level of CSRD.Then, the institutional CEO (CEO institutional-affiliated) is analyzed and it has a significant negative impact.Regarding the control variables, bank age and leverage significantly and positively enhance the CSRD while board size and profitability (ROA) are insignificantly related to CSRD.