International Journal of Applied Business Research
Vol 5 No 01 (2023)

Dividend, Corporate Social Responsibility, And Non-Renewable Energy: Testing Board Diversity Alignments

Muhammad Taufik (Assistant Professor, Faculty of Business and Management, Universitas Internasional Batam, Indonesia)
Winata Clevertan (Student, Faculty of Business and Management, Universitas Internasional Batam, Indonesia)



Article Info

Publish Date
29 Jan 2023

Abstract

This paper scrutinizes the alignments of the diversity the board of directors (BOD) towards dividends for tackling information asymmetry, corporate social responsibility (CSR), and non-renewable energy (NRE) consumption in order to gain communities' legitimacy. BOD diversity includes gender, age, education level, nationality, and accounting expertise. Data for this study were collected from 40 firms listed on the Indonesia Stock Exchange from 2017 to 2020, and panel data was then analyzed. The results show that board diversity does not impact dividends, except for foreign directors, but it represents strong governance and zero agency costs. Additionally, the diversity of the board’s gender, nationality, and accounting expertise negatively affects CSR while other variables are insignificant. Board gender and educational level have significant positive effects on NRE consumption (read: exacerbate) while other variables are relatively insignificant. BOD does not serve the community's interests as much as the investor, but they also have agenda to focus on pro-organization. However, sensitivity analysis has documented the board's apathetic attitude toward the environment. In addition to managerial implications, this research also suggests a top-down approach for regulators to remove the potential rhetoric of the renewable energy target.

Copyrights © 2023






Journal Info

Abbrev

ijabr

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Industrial & Manufacturing Engineering Social Sciences

Description

The International Journal of Applied Business Research (IJABR), an academic journal in the field of business, published by Bandung State Polytechnic, Indonesia. This OPEN ACCESS Journal is intended to foster and stimulate the exchange of discourses on applied business research issues among ...