The effect of supervisory board cross-membership and supervisory board members' expertise to the disclosure of supervisory board's report: Empirical evidence from Indonesia

Abstract

This research aimed to determine the effect of Sharia Supervisory Board cross-membership and Sharia Supervisory Board members' expertise to the disclosure of Sharia Supervisory Board's report. The analysis model used was Logistic Regression Analysis because the dependent variable in this research was dummy variable while Wald is used to test partially and omnibus test is used to test for simultaneous problems. The samples in this research were 12 Sharia Commercial Banks in Indonesia registered in Indonesia Stock Exchange in the period of 2013-2015. The type of data in this research was secondary data obtained from annual report of each company. The results have been verified by the Wald test proving that: (1) the Sharia Supervisory Board cross-membershipcoefficient is negative (-58.348) and not significant (sign 0.999) to the disclosure of the Sharia Supervisory Board's report, (2) the Sharia Supervisory Board members' expertise coefficient is positive (3.239) and significant (sign 0.05). The effect to the disclosure of Sharia Supervisory Board's report based on the result of omnibus test in which the Sharia Supervisory Board cross-membership and Sharia Supervisory Board members' expertise simultaneously have a significant effect to the disclosure of Sharia Supervisory Board's report.