Attributes of corporate boards and Cyber risk disclosure: Evidence from ASEAN Banks
Saiful Anwar (a*), Wiwiek Dianawati (b), Dian Agustia (b)

a) b) Department of Accounting, Faculty of Economics and Business, Universitas Airlangga
*saiful.anwar.384874-2022[at]feb.unair.ac.id

Abstract

Purposes: This study explores corporate boards^ attributes concerning cyber risk disclosure in the banking sector across ASEAN countries.
Data & Methodology: The study was conducted on 44 banks across ASEAN from 2017 to 2022, encompassing 221 firm-year observations. The data was processed using fixed-effect regression and robustness tests. Data was sourced from annual reports, company websites, and the Bloomberg database. Cyber risk disclosure data was collected using Python. The research also conducted additional tests to refine the findings further.
Findings: This study found that board size, gender diversity, and age positively influence cyber risk disclosure. Banks with larger board compositions, inclusivity toward women, and a more mature average age of board members promote greater transparency in cybersecurity during the digital banking era. Additional analysis provides unique insights, revealing that both board gender diversity and board age have thresholds that must be met to contribute effectively to cyber risk disclosure practices. Furthermore, ASEAN banks require governmental involvement to enhance cybersecurity measures.
Implications: This study has implications for practitioners, policymakers, and academics. It successfully confirms the resource dependency theory. Expanding board membership should consider gender inclusivity and age diversity. Policymakers must strengthen digital infrastructure.
Originality/Value: This study provides insights into the role of corporate board attributes in cyber risk disclosure within ASEAN banking and develops a new keyword for cyber risk disclosure.
Limitations: This study cannot be generalized to nonfinancial industries. Additionally, the authors did not consider board diversity in a broader sense, such as education and experience in STEM fields, particularly in IT.

Keywords: board size, gender diversity, board age, cyber risk disclosure

Topic: Corporate governance