Board Characteristics and Sustainability Reporting in Banks: Evidence from Indonesia and Zimbabwe
Keywords:
Board Characteristics, Sustainability Reporting, Corporate Governance, Banking Sector, Emerging Markets
Abstract
This study examines the effect of board characteristics on sustainability reporting in the banking sector, focusing on Indonesia and Zimbabwe as contrasting regulatory environments. Using panel data from 2020 to 2024 and a fixed-effects model with Driscoll Kraay standard errors, this study addresses heteroskedasticity, autocorrelation, and cross-sectional dependence. The findings show that female directors have a positive effect on sustainability reporting, while board size and board independence do not have a significant impact. Board meeting frequency is found to have a negative effect, indicating that governance effectiveness is determined by the quality rather than the intensity of monitoring. In addition, firm size, leverage, and profitability positively influence sustainability disclosure. These findings extend agency theory by demonstrating that governance mechanisms are context-dependent and may not function effectively when implemented solely as formal structures. In emerging markets, sustainability reporting is shaped more by substantive governance practices and institutional pressures than by structural board characteristics. Practically, the results suggest that regulators and financial institutions should focus on strengthening board diversity and improving governance quality rather than merely complying with formal requirements. This study provides comparative evidence and contributes to the understanding of sustainability reporting dynamics in emerging market contexts.
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Razaq, A. G., & Omole, P. M. (2023). Corporate Governance Mechanisms and Sustainability Reporting Practices of Listed Non-Financial Firms in Nigeria. 1(3), 1–18.
Romero, S., & Ruiz-blanco, S. (2014). Women on Boards: Do They Affect Sustainability Reporting? https://doi.org/10.1002/csr.1329
Sary, A., & Limbong, B. (2025). The Impact of Corporate Governance on Sustainability Disclosure in Indonesian Listed Banks. https://doi.org/10.20448/ijsam.v9i1.7261
Suchman, M. C. (1995). MANAGING LEGITIMACY : STRATEGIC AND INSTITUTIONAL APPROACHES. 20(3), 571–610.
Wang, M. (2017). The Relationship between Firm Characteristics and the Disclosure of Sustainability Reporting. https://doi.org/10.3390/su9040624
Yohana, S., & Suhendah, R. (2023). The Effect Of Profitability , Leverage , And Firm Size On Sustainability Report Disclosure. 27(03), 525–545.
Anyigbah, E., Kong, Y., Edziah, B. K., Ahoto, A. T., & Ahiaku, W. S. (2023). Board Characteristics and Corporate Sustainability Reporting: Evidence from Chinese Listed Companies. 1–26.
Brogi, M., & Lagasio, V. (2025a). Sustainability Reporting ? 3928–3943. https://doi.org/10.1002/csr.3159
Brogi, M., & Lagasio, V. (2025b). Sustainability Reporting ? 3928–3943. https://doi.org/10.1002/csr.3159
Buallay, A., & Hamdan, R. (2022). Increasing female participation on boards: Effects on sustainability reporting. (June 2020), 111–124. https://doi.org/10.1002/ijfe.2141
Carolina, Y. (2021). The Impact of Firm Size , Leverage , Firm Age , Media Visibility and Profitability on Sustainability Report Disclosure. 25(1), 36–47.
Chebbi, K. (2022). Board Composition and ESG Disclosure in Saudi Arabia: The Moderating Role of Corporate Governance Reforms.
Cicchiello, A. F., Fellegara, A. M., & Monferrà, S. (2025). Gender diversity on corporate boards: How Asian and African women contribute on sustainability reporting activity. 36(7), 801–820. https://doi.org/10.1108/GM-05-2020-0147
D, N. P., & Auwal, M. (2020). Effect of Sales and Firm Size on Sustainability Reporting Practice of Oil and Gas Companies in Nigeria . 8(1), 1–8.
Darteh, N. K., & Fiorani, G. (2025). Board characteristics and sustainability reporting of state-owned enterprises: Evidence from Sub-Sahara Africa. 33(7), 466–491. https://doi.org/10.1108/MEDAR-08-2024-2607
Dowling, J. (1975). ORGANIZATIONAL LEGITIMACY : Social Values and Organizational Behavior between the Organizations seek to establish congruence. 18(1), 122–136.
Echobu, J., Kighir, E. A., & Yusuf, M. A. (2025). FUDMA Journal of Humanities , Social Science and Creative Arts Corporate Boards and Sustainability Reporting: Evidence from Environmentally Sensitive Firms in Nigeria. 97–110.
Fama, E. F., Jensen, M. C., Journal, S., & A, P. P. (1983). Separation of Ownership and Control SEPARATION OF OWNERSHIP AND CONTROL *. 26(2), 301–325.
García-sánchez, I., Suárez-fernández, O., & Martínez-ferrero, J. (2018). Female directors and impression management in sustainability reporting. International Business Review, (October), 0–1. https://doi.org/10.1016/j.ibusrev.2018.10.007
Habiba Al-Shaer, M. Z. (2016). Habiba Al-Shaer Queensland University of Technology School of Accountancy. https://doi.org/10.1016/j.jcae.2016.09.001
Hasan, A., Hussainey, K., Aly, D., Hasan, A., & Hussainey, K. (2022). Determinants of sustainability reporting decision: Evidence from Pakistan Determinants of sustainability reporting decision: Evidence. 0795. https://doi.org/10.1080/20430795.2021.1964813
(Hausman. (1978). Specification Tests in Econometrics.
Ikpor, I. M., Akanu, O. O., Ugwu, J., Obasi, G., Udu, C., Ulo, F. U., Achilike, N., Adama, L., & Oganezi, B. (2024). Influence of Board Governance Characteristics on Sustainability Accounting and Reporting in a Developing Country: Evidence From Nigeria Large Businesses. (March), 1–14. https://doi.org/10.1177/21582440231224235
Irshad, M., Bin, K., Azman, K., Bin, A., & Rashid, A. (2020). Board Composition and Characteristics ’ Effect on the Quality of Sustainability Reporting Among Companies in Malaysia. 12(4), 278–296.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior , Agency Costs and Ownership Structure Theory of the Firm: Managerial Behavior , Agency Costs and Ownership Structure. 3,4.
Khalaf, B. A. (2024a). Impact of board characteristics on the adoption of sustainable reporting practices. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2391563
Khalaf, B. A. (2024b). Impact of board characteristics on the adoption of sustainable reporting practices. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2391563
Khalaf, B. A. (2024c). Impact of board characteristics on the adoption of sustainable reporting practices. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2391563
Kulsum, S., Ahmad, G. N., & Ulupui, I. (2025). The Effect of Profitability , Leverage , Liquidity , and Company Size on Sustainability Report Disclosure with Corporate Governance as a Moderating Variable in Energy Sector Companies in 2019-2023. 2(2), 92–109.
Lewa, E. M., A, A, Gatimbu, K. K., A, *, Kariuki, P. W., & B. (2024). Heliyon Board attributes and sustainability reporting of selected listed nonfinancial firms in anglophone Sub-Saharan African countries: A multinomial logistic regression. Heliyon, 10(9), e29824. https://doi.org/10.1016/j.heliyon.2024.e29824
Mahmood, Z. (2018). Does Corporate Governance Affect Sustainability Disclosure? A Mixed Methods Study. 1–20. https://doi.org/10.3390/su10010207
Mohtar, M., Sugeng, B., Handayati, P., Мохтар, М., Суген, Б., & Хандаяті, П. (2025). The Impact of Gender Diversity and Political Connections on Sustainability Reporting Disclosure Вплив гендерної різноманітності та політичних зв ’ язків на розкриття інформації про сталий розвиток. 2(108), 152–163.
Oyerogba, E. O., Oladele, F., Kolawole, P. E., & Adeyemo, M. A. (2024). Corporate governance practices and sustainability reporting quality: Evidence from the Nigerian listed financial institution. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2325111
Park, H., & Kim, J. D. (2020). Transition towards green banking: Role of financial regulators and financial institutions.
Pratama, B. C., & Innayah, M. N. (2021). Can family ownership strengthen the relationship between intellectual capital and performance in asean high-tech firms? International Journal of Business and Society, 22(3), 1102–1122. https://doi.org/10.33736/ijbs.4286.2021
Pratama, B. C., Kamaluddin, A., & Saad, S. (2022). Social performance of Islamic banks in South-East Asia: Is intellectual capital and sharia supervisory boards matters? Quality-Access to Success, 23(186), 141–150.
Rahman, P. F. P. M. (2020). Author ’ s personal copy Impact of corporate governance on CSR disclosure Author ’ s personal copy. (0123456789).
Razaq, A. G., & Omole, P. M. (2023). Corporate Governance Mechanisms and Sustainability Reporting Practices of Listed Non-Financial Firms in Nigeria. 1(3), 1–18.
Romero, S., & Ruiz-blanco, S. (2014). Women on Boards: Do They Affect Sustainability Reporting? https://doi.org/10.1002/csr.1329
Sary, A., & Limbong, B. (2025). The Impact of Corporate Governance on Sustainability Disclosure in Indonesian Listed Banks. https://doi.org/10.20448/ijsam.v9i1.7261
Suchman, M. C. (1995). MANAGING LEGITIMACY : STRATEGIC AND INSTITUTIONAL APPROACHES. 20(3), 571–610.
Wang, M. (2017). The Relationship between Firm Characteristics and the Disclosure of Sustainability Reporting. https://doi.org/10.3390/su9040624
Yohana, S., & Suhendah, R. (2023). The Effect Of Profitability , Leverage , And Firm Size On Sustainability Report Disclosure. 27(03), 525–545.
Published
2026-06-30
How to Cite
Danken, M., Bima Cinintya Pratama, Santoso, S. B., & Hapsari, I. (2026). Board Characteristics and Sustainability Reporting in Banks: Evidence from Indonesia and Zimbabwe. International Journal of Education, Vocational and Social Science , 5(03), 3141-3163. https://doi.org/10.63922/ijevss.v5i03.4718
Contact Person +6282139474255
Email : ijevss@citakonsultindo.or.id / editor.ijevss@gmail.com
