The Relationship between Corporate Social Responsibility Disclosure and Firm Value: The Mediating Role of stock liquidity - Evidence from Egypt

Abstract

This research aims to examining the direct and indirect effects, through the stock liquidity, of the level of disclosure of corporate social responsibility and its different dimensions (environmental, social, employee, and product dimension), on firm value, using the sample of 52 firm listed in the Egyptian stock exchange and listed in the EGX100 index for a period of five years from 2017 to 2021.Using the path analysis, the results indicated that: (1) There is a significant positive effect of the level of disclosure of corporate social responsibility and its environmental and social dimensions on both firm value and the stock liquidity. (2) There is a significant positive effect of the stock liquidity on the firm's value. (3) There is a significant positive indirect effect of the level of disclosure of corporate social responsibility and its environmental and social dimensions on firm value. (4) There is no significant effect of the level of disclosure of social responsibility dimensions related to employees and products on firm value. (5) There is a significant negative indirect effect of the level of disclosure of the dimension of the employees on firm value.