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Board of Directors and CSR in Banking: The Moderating Role of Bank Regulation and Investor Protection Strength
Author(s) -
GarcíaSánchez IsabelMaría,
MartínezFerrero Jennifer,
GarcíaMeca Emma
Publication year - 2018
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/auar.12199
Subject(s) - accounting , independence (probability theory) , corporate governance , business , corporate social responsibility , gender diversity , diversity (politics) , sample (material) , banking industry , empirical research , empirical evidence , public relations , finance , political science , law , philosophy , statistics , chemistry , mathematics , chromatography , epistemology
This paper brings together research on boards of directors as the backbone of corporate governance and corporate social responsibility (CSR) practices in the banking industry. The underlying idea is that some characteristics of bank boards, in particular independence and gender diversity, may impact the CSR commitments of banks. By making use of a sample of 159 banks in nine countries during the period 2004–2010, our empirical evidence suggests that banks with more independent directors and more female members on their boards incline toward socially responsible behaviour. Our results also suggest that institutional factors play a significant role in these effects. They show that in greater regulatory and stronger investor protection environments, board independence and gender diversity have more influence on the social behaviour of banks.