CSR Reporting: Perspective of Female Audit Committee Having Financial Expertise

Abstract

This paper contributes to the evidence that identified gender and skill affect organizational and business practices. This research combines two characteristics of the audit committee, namely gender and financial expertise, as one perspective. The research aims to analyze whether the presence of the female audit committee with financial expertise has an impact on the company’s CSR report. This research confirmed that females with financial expertise in the audit committee had a negative effect on CSR reporting. The female audit committee having financial expertise will be more conservative regarding CSR reporting. Conservative reporting stands for not exaggerate the CSR activity. The result was limited to the sample of 157 industrial and manufacturing companies listed on the Indonesia Stock exchange (IDX) in 2015 – 2016. CSR reporting checklist is based on Hackston & Milne, including environment, energy, employees, products, and community involvement aspects. Control variables used in the research were earnings management, leverage, ROA, and types of industry.