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Abstract

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.

Keywords: CSRD, Institutional directors, banks, Jordan

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