Do Firm Size and Financial Performance Affect Corporate Social Responsibility Disclosure: Employees’ and Environmental Dimensions?

Abstract

The paper empirically tests the impact of company size and financial performance on Corporate Social Responsibility Disclosure (CSRD), from the Employees' and Environmental Dimensions perspective with reference to the disclosure frequency and quality of these dimensions among Jordanian industrial public share holding companies; whether there is an impact of firm size measured by total assets, ROA, ROE and Leverage on Corporate Social Responsibility Disclosures levels toward employees' dimension (CSRD1) and the environmental activities Dimension (CSRD2) in the Jordanian public industrial firms. The paper analysis is based on contents disclosed in their annual reports for 2013. The study applies suggested CSRD checklist for measuring the extent of CSRD in annual reports of these companies. Regression analysis is used to examine this issue. This study describes from theoretical point-of-view, social responsibility activities, as well as some financial performance, and firm size. Then, an empirical review is gained of reports published by a representative sample from the industrial sector. An attempt has been made to verify if there is a correlation between CSRD1, CSRD2 contents disclosed, financial performance; profitability, Leverage and size. The paper found solid evidence to accept positive significant influence of company size on both types of CSRD dimensions; employees and the environment. It found a negative significant impact of leverage on CSRDboth employees and environment-dimensions. However, the study showed a positive significant impact of operating performance measured by Return on Assets (ROA) for the sample on CSRD towards employees dimension only, the impact of ROA on CSRD towards the environmental dimension is positive and insignificant. The impact of ROE has negative insignificant on CSRD towards employees. Consequently, it showed Positive insignificant impact of ROE on CSRD towards environmental dimension. This paper opens a new research path in CSRD, financial performance and size, for a possible link between both variables; a matter that has not been previously explored in Jordanian Industrial Public Shareholding Companies.

Social Disclosure and Profitability: Study in Indonesian Companies

“…This may indicate that the size of the firm does not affect the high value of disclosure. This finding differs from previous findings which concluded that there is a relationship between firm size to disclosure value (Fauzi, 2008, Chauhan andAmit, 2014;Nawaiseh, 2015). However, these findings are in line with findings from…”

“…Similar to firm size, leverage is also found to have no relationship to the value of disclosure. Nawaiseh (2015) argues that high corporate leverage values usually lead to high disclosure rates because companies want to show debtholders that they are not violating debt contracts. We found a positive relationship between leverage and disclosure value but the relationship was not significant.…”

Corporate social responsibility reporting and corporate governance mechanisms: An international outlook from emerging countries

“…Firm size is another control variable considered, labelled as SIZE and calculated as the log of total assets. Authors such as Nawaiseh () and Muttakin and Khan () provide evidence of the positive association between firm size and CSR reporting. Corporate performance is also controlled for using the return on assets, labelled as ROA and measured as the operating income before interest and taxes over total assets.…”

Assessment of the level of Realization of Sustainable Development Goals: Evidence from Manufacturing Firms in Nigeria

“…To collect the data set for testing hypotheses 1, 2, 3 and 4, content analysis of 10 annual reports of the studied firms was conducted. The choice of content analysis is consistent with prior disclosure studies [see Nawaiseh, 2015;Gatimbu & Wabwire, 2016]. Any disclosed indicator (item) of sustainable development goals in the annual reports was scored 1 or 0 if not disclosed.…”