Social Performance of Indonesian Islamic Banks: The Role of Board of Directors

Abstract

This study aims to examine the social performance of Islamic banks by considering Board of Directors as antecedents, because the achievement of social performance is expected to increase the trust and loyalty of depositors, shareholders and other stakeholders towards Islamic banks. Board of Directors variable is proxied by the size of board, board gender diversity, directors’ age, and CEO duality. Panel data regression model analysis is used for the sample of Indonesian Islamic banks during 2008-2019 periods. The results showed that the size of board and CEO duality has a positive effect towards Social Performance. Although, the results failed to prove that board gender diversity and directors’ age has a positive effect on firm financial performance. It can be concluded that the Board of Directors could manage the social activities conducted by Islamic banks will lead to an improvement of social performance.