Diversity of the Board of Directors, Sharia Supervisory Board, and Islamic Social Reporting at Islamic Commercial Banks in Indonesia

Abstract

This study aims to examine the effect of Diversity of the Board of Directors, Sharia Supervisory Board and Disclosure of ISR on Islamic Banking in Indonesia. Based on the sampling criteria, 12 Islamic banks were obtained during the period 2020-2023, with 48 Islamic banks. The results showed that the level of education and gender diversity of the board of directors, as well as the level of education of the sharia supervisory board had no effect on ISR disclosure. This finding confirms the important role of the sharia supervisory structure in improving social transparency based on Islamic values. This study contributes to the development of agency theory in the context of Islamic banking and Islamic bank management in strengthening sharia governance.