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The Impact of Corporate Social Responsibility Disclosure on the Financial Performance of Banks Listed on the PEX and the ASE

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Artificial Intelligence for Sustainable Finance and Sustainable Technology (ICGER 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 423))

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Abstract

The study aim was to investigate the impact of corporate social responsibility disclosure (CSRD) on the financial performance (FP) of Palestinian and Jordanian banks. All banks listed on the Palestine Exchange (PEX) and Amman Stock Exchange (ASE) during the period 2010–2019 were considered. The study employed regression model on a sample of 60 Palestinian bank-observations and 150 Jordanian bank-observations. While CSRD was measured using a disclosure index includes 30 items, return on assets (ROA), return on equity (ROE) and Tobin's Q were used to measure FP. Results of the study reported a significant positive relationship between CSRD and Tobin's Q (Q ratio). However, no relationships were identified between CSRD and the other two FP indicators. The study recommended to improve the quality of CSRD through extending the minimum regulatory requirements related to CSRD in Palestine and Jordan. Furthermore, all related parties must be educated about the importance of CSRD and its practices.

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Authors and Affiliations

  1. An- Najah National University, Nablus, Palestine

    Abdulnaser Nour, Muiz Abu Alia & Manar Balout

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  1. Abdulnaser Nour
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  2. Muiz Abu Alia
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  3. Manar Balout
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Correspondence to Muiz Abu Alia .

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Editors and Affiliations

  1. Accounting, Finance and Banking Department, College of Business and Finance, Ahlia University, Manama, Bahrain

    Abdalmuttaleb M. A. Musleh Al-Sartawi

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Nour, A., Alia, M.A., Balout, M. (2022). The Impact of Corporate Social Responsibility Disclosure on the Financial Performance of Banks Listed on the PEX and the ASE. In: Musleh Al-Sartawi, A.M.A. (eds) Artificial Intelligence for Sustainable Finance and Sustainable Technology. ICGER 2021. Lecture Notes in Networks and Systems, vol 423. Springer, Cham. https://doi.org/10.1007/978-3-030-93464-4_5

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