**6.1 Descriptive statistics**

**Table 3** portrays descriptive statistics of the variables. As shown in **Table 3**, the mean value of CSR expenditure is BDT 96.397 million with a minimum of zero and a maximum of BDT1813.6 million, indicating a significant difference between banks regarding CSR spending. As for board elements, not many banks have the majority of independent directors on the board (13.77% on an average) and board gender as well (10.50% on an average). The mean value of board size is 13.98, with a maximum of 28 directors and a minimum of five directors, indicating a large gap in board size between banks. Likewise, the average number of board meetings is 19.929, ranging between 4 and 62, indicating sharp differences between banks holding board meetings. Concerning the control variables, the banks' mean return on assets (ROA) is 1.3%, with a minimum of −13.51%. Similarly, the mean value of total assets (TA) is BDT 268,174 million, with a minimum of BDT 11,240 million. The average leverage of the bank (LEV) is 92.90% because the banking sector is highly leveraged by

*Does Board Structure Matter in CSR Spending of Commercial Banks? Empirical Evidence… DOI: http://dx.doi.org/10.5772/intechopen.105589*


#### **Table 3.**

*Descriptive statistics.*

operation. The average age of the banks varies between 0 and 37 years. As a whole, the descriptive statistics of the variables used in the study show larger fluctuations in terms of average performance and standard deviations.

#### **6.2 Correlation matrix**

**Table 4** presents the correlation coefficient matrix in the variables under study. As shown in **Table 4**, CSR spending (CSREXP) is positively associated with the size of the firm (TA), with a correlation coefficient of 0.705 (p < 0.001) at a 1% significant level. Also, there is a positive relationship between CSR spending and leverage of the firm (LEV), with a correlation coefficient of 0.245 (p < 0.001) at a 1% significance level. Similar evidence is found between the age of the bank (AGE) and CSR spending, with a correlation coefficient of 0.172 (p < 0.001) at a 1% significant level. However, the correlation between CSR spending and return on assets (ROA) is insignificant. As regards board structure, CSR spending has a positive relationship with the board size (BDSIZE), board meetings (BDMEET), and board independence (BDIND) at the 1% significance level. However, there is no significant association between CSR spending and board gender (BDGEND), indicating that female members on the board do not influence CSR spending by banks. Finally, we did not see any multicollinearity problem in the factors to run the regression.

#### **6.3 Regression results**

**Table 5** provides regression outputs. As shown in **Table 5**, board structure elements, such as board size (BDSIZE) and board independence (BDIND), are positively and significantly associated with CSR expenditure by banks at the 1% significance level. This result strongly supports our hypothesis. However, we find that female representation on the board is negatively associated with CSR spending by banks at the 5% significance level. This result refutes our predefined hypothesis. Also, we do not find any significant relationship between the number of board meetings and CSR spending by banks. This is contrary to the proposed hypothesis that outlines frequent board meetings tend to promote CSR spending by banks. Concerning


*Does Board Structure Matter in CSR Spending of Commercial Banks? Empirical Evidence… DOI: http://dx.doi.org/10.5772/intechopen.105589*


#### **Table 5.**

*Ordinary least square regression clustered by firm and years.*

control variables, we find that bank size (TA) promotes CSR spending by banks at the 1% significance level. Precisely, a 1% increase in banks' total assets can enhance nearly 162% of CSR spending. Also, **Table 5** reveals that leverage has a significant and positive connection with CSR spending. This is expected because the banking industry primarily lends funds by taking public deposits. By contrast, we find that age of the bank negates CSR spending by banks. Also, no significant relationship runs between banks' profitability (ROA) and CSR spending, although the coefficient of the ROA has been highly positive. We leave these two issues for further investigation.
