The Effect of Board Characteristics on the Disclosure of Islamic Social Reporting in Islamic Banks in Asia

This study aims to examine the disclosure of Islamic social reporting in Islamic banks that publish annual reports and are listed on the stock exchange of each country in Asia. This study focuses on Islamic banks that are listed on the stock exchange in 2022. A total of 100 Islamic banks were included in the data set, selected through the purposive sampling method. The independent variables are board size, the proportion of independent commissioners, and the frequency of board meetings. The concept of agency theory suggests that the role of the board is to monitor and evaluate the reporting and disclosure practices of a company, particularly in the context of social reporting within Islamic banking. The characteristics of the board of commissioners have generally been identified as factors with the potential to influence corporate disclosure. The results of this study show that the size of the board of commissioners and the frequency of board meetings have a significant positive relation with the disclosure of Islamic social reporting. Conversely, the proportion of independent board members has been found to exert a significant negative influence on the disclosure of Islamic social reporting.