PENGARUH CORPORATE GOVERNANCE TERHADAP GREEN BANKING DISCLOSURE (STUDI PADA PERUSAHAAN PERBANKAN DI INDONESIA YANG TERDAFTAR DI BEI PERIODE 2018 – 2020)

Abstrak

This research aims to analyze the influence of Corporate Governance on Green Banking Disclosure in banking
companies listed on the Indonesia Stock Exchange during the period of 2018 - 2020. Corporate governance plays a
crucial role in ensuring transparency and accountability within companies, as well as supporting their efforts in
implementing sustainable and responsible business practices towards the environment. In this study, Corporate
Governance is measured through three variables: Board of Commissioners, Independent Commissioners, and
Institutional Ownership. The Board of Commissioners is considered as one of the institutions responsible for decisionmaking
within the company. The number of board members is an important indicator in this research, as a larger board
size allows for diverse perspectives and expertise to be applied in the decision-making process. Additionally,
Independent Commissioners are also a significant factor in maintaining the independence and integrity of the
company's oversight. In this study, the proportion of Independent Commissioners compared to the total number of
commissioners is used as a measure of their presence and independence. Institutional Ownership is another variable of
interest in this research. Institutional ownership reflects the participation and involvement of financial institutions and
institutional investors in the ownership of company shares. The percentage of institutional ownership in relation to the
total outstanding shares is measured to gain insights into the extent of financial institutions' role in decision-making
and oversight within the company. Green Banking Disclosure is the main focus of this study. Green Banking
encompasses banking practices that prioritize environmental sustainability. Green Banking Disclosure is measured
using the Green Banking Disclosure Index (GBDI), which covers various aspects such as environmental risk
management, sustainable financing, and other environmental initiatives. To test the relationship between these
variables, the researcher employs multiple linear regression analysis. The data used in this study consists of 96
observations, involving 32 banking companies each year. The data is analyzed using the Statistical Package for Social
Sciences (SPSS) software to generate generalizable findings.The results of this study indicate that the Board of
Commissioners has a significant positive influence on Green Banking Disclosure in banking companies listed on the
Indonesia Stock Exchange during the period of 2018 - 2020. This suggests that a stronger composition and role of the
Board of Commissioners in decision-making lead to higher levels of disclosure of environmentally friendly business
practices. However, the study did not find a significant relationship between Independent Commissioners and Green
Banking Disclosure, and it found that Institutional Ownership has a significant negative influence on Green Banking
Disclosure. These findings provide a deeper understanding of the importance of the role and composition of Corporate
Governance in promoting the disclosure of sustainable business practices in banking companies in Indonesia.
Keywords: Board of Commissioners; Independent Commissioners; Institutional Ownership; Green Banking Disclosure