Sebelas Maret International Conferences, The 2nd INCREDIBLE

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The Effect on Company Characteristics and Size of the Board of Commissioners on Green Banking Implementation in Indonesia Banking Industry
Yulia Eka Riyanti, Muhammad Zilal Hamzah, Deni Darmawati

Building: Parallel Session 1
Room: H
Date: 2020-10-27 02:45 PM – 04:00 PM
Last modified: 2020-10-22


The issue of sustainable development has become a major concern in various activities in the world. This issue then developed in various fields, including in the economic sector with the term of green economy and subsequently went down to the banking sector and known as green banking. This study aims at analyzing the factors influencing green banking in Indonesia, which consists of; company profitability, company size, company age and size of board of commissionersThe data used in this research are secondary data which are derived from the annual reports of banks that pusblished on the Indonesia Stock Exchange in period of year 2016-2018. The sample used is 30 banking companies those selected by purposive sampling method. The analysis method used in this research is panel data regression analysis. The results of this research suggest that profitability, business size, business age and commissioner size simultaneously have a major impact on green banking implementation with an adjusted R2 value of 24%. Meanwhile, partially, only company size has a positive and significant effect on green banking implementation. Meanwhile, profitability, company age and size of the Board of Commissioners have no substantial result on the implementation of green banking.