Investigating the Board of Commissioners’ Monitoring Intensity Effects on CSR Transparency and Cost of Debt

This study examines whether the board of commissioners’ monitoring intensity (BOCM) moderates the relationship between corporate social responsibility disclosure (CSRD) and the cost of debt (COD). Using an unbalanced panel dataset of 1516 firm-year observations from companies listed on the Indonesia Stock Exchange during 2018–2023, this study applies Moderated Regression Analysis (MRA) to test the proposed relationships. The results show that CSRD is negatively associated with COD, indicating that greater CSR transparency reduces borrowing costs. More importantly, BOCM significantly moderates this relationship. The interaction between BOCM and CSRD suggests that stronger board of commissioner monitoring weakens the marginal effect of CSRD on COD, implying that intensive monitoring may partly substitute for the risk-reducing role of CSR disclosure in determining COD. In addition, BOCM has a direct negative effect on COD, suggesting that creditors value the active board of commissioners’ monitoring as an internal governance mechanism that lowers perceived financing risk. These findings extend the literature by demonstrating that the effectiveness of CSRD in reducing COD depends on the strength of BOCM. This study offers practical implications for regulators and firms seeking to enhance governance quality, improve disclosure credibility, and reduce financing costs.