Skip to main content

Advertisement

SpringerLink
Log in

Corporate social responsibility disclosure (CSRD) determinants of listed companies in Palestine (PXE) and Jordan (ASE)

  • Original Paper
  • Published:
Review of Managerial Science Aims and scope Submit manuscript

Abstract

The purpose of this study is to characterize and evaluate corporate social responsibility disclosure (CSRD) practices in Palestine and Jordan; and to determine the formal institutional factors that can influence in CSRD—the legal context and the existence of control mechanisms such as external audits and corporate governance. We analyse whether CSR in Palestine—a country under Israeli occupation and in a state of war that has lasted decades—possesses specific characteristics or follows the same model than Western countries. Besides, we have chosen Jordan in order to highlight possible differences between similar countries. Jordan and Palestine have a similar cultural context because many Palestinians have immigrated to Jordan, but the former is living in a state of stability and safety. The sample of the study consists of 101 companies; the data refers to 2011. Our results show that levels of CSRD in Jordan are higher than in Palestine in all aspects, though it is low in both countries when compared with Western countries. Both countries enhance the same issues but, in relative terms, Palestinian firms present a greatest concern on issues related to human resources and commitment towards community. Moreover, we have found a positive association between CSRD and the legal system, external auditor firm characteristics and corporate governance (e.g. board size and board audit committee). Other aspects related to corporate governance, such as the existence of a board governance committee or board independence, do not affect the level of CSRD.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Abu-Baker N, Naser K (2000) Empirical evidence on corporate social disclosure (CSD) practices in Jordan. Int J Commer Manag 10(3–4):18–34

    Article  Google Scholar 

  • Ahmed K, Courtis JK (1999) Associations between corporate characteristics and disclosure levels in annual reports: a meta-analysis. British Account Rev 31(1):35–61

    Article  Google Scholar 

  • Akhtaruddin M, Hossain M, Yao L (2009) Corporate governance and voluntary disclosure in corporate annual reports of Malaysian listed firms. J Appl Manag Acc Res 7(1):1–20

    Google Scholar 

  • Alawi N, Rahman A (2011) Corporate social responsibility disclosure in response to CSR award with the moderating effect of family group affiliation in Yemen. Proceedings from the 2011 international research conference and colloquium. College of Business, University Utara Malaysia. http://www.unirazak.edu.my/colloquium2011/eproceedings/1.%20FIN-Nahg_Alawi.pdf. Accessed 2 Feb 2013

  • Amran A, Devi S (2008) The impact of government and foreign influence on the corporate social reporting: a case of Malaysia. Manage Audit J 23(4):386–404

    Article  Google Scholar 

  • Barako DG, Hancock P, Izan H (2006) Factors influencing voluntary corporate disclosure by Kenyan companies. Corp Gov Int Rev 14(2):107–126

    Article  Google Scholar 

  • Bayoud NS, Kavanagh M, Slaughter G (2012) Factors influencing levels of corporate social responsibility disclosure by Libyan firms: a mixed study. Int J Econ Financ 4(4):13–29

    Article  Google Scholar 

  • Brammer S, Pavelin S (2006) Voluntary environmental disclosures by large UK companies. J Bus Financ Acc 33(7):1168–1188

    Article  Google Scholar 

  • Brammer S, Jackson G, Matten D (2012) Corporate social responsibility and institutional theory: new perspectives on private governance. Soc Econ Rev 10(1):3–28

    Article  Google Scholar 

  • Branco MC, Rodrigues LL (2008) Factors influencing social responsibility disclosure by Portuguese companies. J Bus Ethics 83:685–701

    Article  Google Scholar 

  • Broberg P, Tagesson T, Collin S (2009) What explains variation in voluntary disclosure? A study of the annual reports of corporations listed on the Stockholm Stock Exchange. J Manag Gov 14(4):351–378

    Article  Google Scholar 

  • Buhr N, Freedman M (2001) Culture, institutional factors and differences in environmental disclosure between Canada and the United States. Crit Perspect Acc 12:293–322

    Article  Google Scholar 

  • Buniamin S, Alrazi B, Johari N, Abd Rahman NR (2008) An investigation of the association between corporate governance and environmental reporting in Malaysia. Asian J Bus Acc 1(2):65–88

    Google Scholar 

  • Cadbury (1992) http://www.ecgi.org/codes/documents/cadbury.pdf. Accessed 1 March 2013

  • Campbell JL (2006) Institutional analysis and the paradox of corporate social responsibility. Am Behav Sci 49(7):925–938

    Article  Google Scholar 

  • Campbell JL (2007) Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Acad Manag Rev 32(3):946–967

    Article  Google Scholar 

  • Cheng ECM, Courtenay SM (2006) Board composition, regulatory regime and voluntary disclosure. Int J Acc 41(3):262–289

    Article  Google Scholar 

  • Clarke J, Gibson-Sweet M (1999) The use of corporate social disclosures in the management of reputation and legitimacy: a cross-sectoral analysis of UK Top 100 companies. Bus Ethics Eur Rev 8(1):5–13

    Article  Google Scholar 

  • Commission of the European Communities (2002) In its Green paper. http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/03/344&format=HTML&aged=0&language=EN&guiLanguage=en. Accessed 10 March 2013

  • Cooke TE (1989) Disclosure in the corporate annual reports of Swedish companies. Acc Bus Res 19(74):113–124

    Article  Google Scholar 

  • Cormier D, Gordon IM (2001) An examination of social and environmental reporting strategies. Acc Audit Acc J 14(5):587–616

    Article  Google Scholar 

  • Dahawy K (2009) Company characteristics and disclosure level: the case of Egypt. Int Res J Financ Econ 34:194–208

    Google Scholar 

  • Dahya J, Lonie AA, Power DM (1996) The case for separating the roles of chairman and CEO: an analysis of stock market and accounting data. Corp Gov Int Rev 4:71–77

    Article  Google Scholar 

  • De Angelo L (1981) Auditor size and audit quality. J Acc Econ 3:183–199

    Article  Google Scholar 

  • Deegan C, Blomquist C (2006) Stakeholder influence on corporate reporting: an exploration of the interaction between WWF-Australian and the Australian minerals industry. Acc Organ Soc 31:343–372

    Article  Google Scholar 

  • Dong M, Stettler A, Antonakis J (2007) Direct drivers of corporate disclosure: a multicountry, multilevel model. IRM Institute of Research in Management, Working Paper 0702

  • Donnelly R, Mulcahy M (2008) Board structure, ownership, and voluntary disclosure in Ireland. Corp Gov Int Rev 16(5):416–429

    Article  Google Scholar 

  • Dulacha GB (2007) Determinants of voluntary disclosure in Kenyan companies annual reports. Afr J Bus Manag 1(5):113–128

    Google Scholar 

  • Durnev A, Han Kim EH (2005) To steal or not to steal: firm attributes, legal environment, and valuation. J Financ 60(3):1461–1493

    Article  Google Scholar 

  • Frías-Aceituno JV, Ariza LR, Sánchez G (2013) Is integrated reporting determined by a country’s legal system? An exploratory study. J Clean Prod 44:45–55

    Article  Google Scholar 

  • Ghazali N (2007) Ownership structure and corporate social responsibility disclosure: some Malaysian evidence. Corp Gov 7(3):251–266

    Article  Google Scholar 

  • Gray R, Kouhy R, Lavers S (1995) Methodological themes—constructing a research database of social and environmental reporting by UK companies. Acc Audit Acc J 8(2):78–101

    Article  Google Scholar 

  • Gray R, Javad M, Power DM, Sinclair CD (2001) Social and environmental disclosure and corporate characteristics: a research note and extension. J Bus Financ Acc 28(3–4):327–356

    Article  Google Scholar 

  • Guthrie J, Parker L (1990) Corporate social disclosure practice: a comparative international analysis. Adv Public Interest Acc 3:159–173

    Google Scholar 

  • Hackston D, Milne MJ (1996) Some determinants of social and environmental disclosures in New Zealand companies. Acc Audit Acc J 9(1):77–108

    Article  Google Scholar 

  • Halme M, Huse M (1997) The influence of corporate governance, industry and country factors on environmental reporting. Scand J Manag 13(2):137–157

    Article  Google Scholar 

  • Haniffa RM, Cooke TE (2002) Culture, corporate governance and disclosure in Malaysian corporations. Abacus 38(3):317–349

    Article  Google Scholar 

  • Haniffa RM, Cooke TE (2005) The impact of culture and governance on corporate social reporting. J Acc Public Policy 24(5):391–430

    Article  Google Scholar 

  • Haron H, Ismail I, Yahya S (2008) Factors influencing corporate social disclosure practices in Malaysia. J Manag 12(1):86–100

    Google Scholar 

  • Ho LCJ, Taylor ME (2007) An empirical analysis of triple bottom-line reporting and its determinants: evidence from the United States and Japan. J Int Finan Manag Acc 18(2):123–150

    Article  Google Scholar 

  • Hossain M, Islam K, Andrew J (2006) Corporate social and environmental disclosure in developing countries: evidence from Bangladesh. http://ro.uow.edu.au/commpapers/179. Accessed 19 Feb 2013

  • Imam S (2000) Corporate social performance reporting in Bangladesh. Manag Audit J 15(3):133–142

    Article  Google Scholar 

  • Inchausti B (1997) The influence of company characteristics and accounting regulation on information disclosed by Spanish firms. Eur Acc Rev 6(1):45–68

    Article  Google Scholar 

  • Jamali D (2007) The case for strategic corporate social responsibility in developing countries. Bus Soc Rev 112(1):1–27

    Article  Google Scholar 

  • Jarbou Y (2007) The scope of applying accounting measurement and disclosure of CSR in relation to financial lists of companies in Gaza strip. Mag Islam Univ 15(1):239–265

    Google Scholar 

  • Jo H, Harjoto MA (2011) Corporate governance and firm value: the impact of corporate social responsibility. J Bus Ethics 103(3):351–383

    Article  Google Scholar 

  • Kamla R (2007) Critically appreciating social accounting and reporting in the Arab Middle East: a post colonial perspective. Adv Int Acc 20:105–177

    Article  Google Scholar 

  • Kaufmann D, Kraay A, Mastruzzi M (2010) The worldwide governance indicators: methodology and analytical issues. Hague J Rule Law 3(2):220–246

    Article  Google Scholar 

  • Kemp M (2001) Corporate social responsibility in Indonesia: quixotic dream or confident expectation? (program paper no. 6), United Nations Research Institute for Social Development, Geneva, Switzerland. http://www.unrisd.org/80256B3C005BCCF9/search/EF8F86E50D18E6D480256B61005AE53A?OpenDocument. Accessed 8 April 2013

  • Kent P, Steward J (2008) Corporate governance and disclosures on the transition to international financial reporting standards. Acc Financ 48(4):649–671

    Google Scholar 

  • Khan A, Muttakin MB, Siddiqui J (2013) Corporate governance and corporate social responsibility disclosures: evidence from an emerging economy. J Bus Ethics 114:207–223

    Article  Google Scholar 

  • Lassaad BM, Khamoussi H (2012) Determinants of communication about corporate social responsibility: case of French companies. Int J Contemp Bus Stud 3(5):49–60

    Google Scholar 

  • Luetkenhorst W (2004) Corporate social responsibility and the development agenda. Intereconomics 39(3):157–168

    Article  Google Scholar 

  • Mallin C, Mullineux A, Wihlborg C (2005) The financial sector and corporate governance: the UK case. Corp Gov Int Rev 13(4):532–541

    Article  Google Scholar 

  • Mirfazli E (2008) Evaluate corporate social responsibility disclosure at annual report companies in multifarious group of industry members of Jakarta Stock Exchange (JSX), Indonesia. Soc Responsib J 4:388–406

    Article  Google Scholar 

  • Mirshekary S, Sandagaran S (2005) Perceptions and characteristics of financial statement users in developing countries: evidence from Iran. J Int Acc Audit Taxat 14(1):33–54

    Article  Google Scholar 

  • Newson M, Deegan C (2002) Global expectations and their association with corporate social disclosure practices in Australia, Singapore and South Korea. Int J Acc 37:183–213

    Article  Google Scholar 

  • Parsa S, Kouhy R (2008) Social reporting by companies listed on the Alternative Investment Market. J Bus Ethics 79(3):345–360

    Article  Google Scholar 

  • Patelli L, Prencipe A (2007) The relationship between voluntary disclosure and independent directors in the presence of a dominant shareholder. Eur Acc Rev 16(1):5–33

    Article  Google Scholar 

  • PECDAR (2010) The palestinian economic council for development and construction. http://www.pecdar.org/einside.php?id=10&srcopt=1&page=2&srckey=Keywords&fromdate=From%20Date&todate=To%20Date. Accessed 27 Feb 2013

  • Ponnu C, Okoth M (2009) Corporate social responsibility disclosure in Kenya: the Nairobi Stock Exchange. Afr J Bus Manag 3(10):601–608

    Google Scholar 

  • Rizk R, Dixon R, Woodhead A (2008) Corporate social and environmental reporting: a survey of disclosure practices in Egypt. Soc Responsib J 4:306–323

    Article  Google Scholar 

  • Roberts RW (1992) Determinants of corporate social responsibility disclosure: an application of stakeholder theory. Acc Organ Soc 17(6):595–612

    Article  Google Scholar 

  • Rouf A (2011) The corporate social responsibility disclosure: a study of listed companies in Bangladesh. Bus Econ Res J 2(3):19–32

    Google Scholar 

  • Suwaidan MS (2004) Social responsibility disclosure and corporate characteristics: the case of Jordanian industrial companies. Int J Acc Audit Perform Eval 1(4):432–447

    Google Scholar 

  • Uwalomwa U (2011) An empirical investigation of the association between firms characteristics and corporate social disclosures in the Nigerian financial sector. J Sustain Dev Afr 13(1):60–74

    Google Scholar 

  • Uwuigbe U, Egbide B (2012) Corporate social responsibility disclosures in Nigeria: a study of listed financial and non-financial firms. J Manag Sustain 2(1):160–169

    Article  Google Scholar 

  • Vander Bauwhede H, Willekens M (2008) Disclosure on corporate governance in the European Union. Corp Gov Int Rev 16(2):101–115

    Article  Google Scholar 

  • Walden WD, Schwartz BN (1997) Environmental disclosures and public policy pressure. J Acc Public Policy 16(2):125–154

    Article  Google Scholar 

  • Wanderley L, Lucian R, Farache F, Filho J (2008) CSR information disclosure on the web: a context-based approach analysing the influence of country of origin and industry sector. J Bus Ethics 82(2):369–378

    Article  Google Scholar 

  • Weir C, Laing D (2001) Governance structure, director independence and corporate performance in the UK. Eur Bus Rev 13(2):86–94

    Article  Google Scholar 

  • Williams S (1999) Voluntary environmental and social accounting disclosure practices in the Asia-Pacific region: an international empirical test of political economy theory. Int J Acc 34(2):209–238

    Article  Google Scholar 

  • Wise V, Ali M (2009) Corporate governance and corporate social responsibility in Bangladesh with special reference to commercial banks (No. 2009-05). http://ideas.repec.org/p/aiu/abewps/80.html. Accessed 3 Feb 2013

  • World Bank (2004) http://ebookbrowse.com/2004csr-umeda-pdf-d98085323. Accessed 20 March 2013

  • World Business Council for Sustainable Development (2000) Corporate social responsibility; making good business sense, world business council for sustainable development; Geneva. http://research.dnv.com/csr/PW_Tools/PWD/1/00/L/1-00-L-2001-01-0/lib2001/WBCSD_Making_Good_Business_Sense.pdf. Accessed 21 Jan 2013

  • Xie B, Davidson WN, Dalt PJ (2001) Earnings management and Corporate Governance: the roles of the board and the audit committee. http://SSRN.Com/Abstract=304195. Accessed 1 March 2013

  • Yao S, Wang J, Song L (2011) Determinants of social responsibility disclosure by Chinese firms (discussion paper 72). The University of Nottingham, China Policy Institute, UK. http://www.nottingham.ac.uk/cpi/documents/discussion-papers/discussion-paper-72-csr.pdf. Accessed 16 April 2013

  • Zain MM, Janggu T (2006) Corporate social disclosure (CSD) of construction companies in Malaysia. Malays Acc Rev 5(1):85–114

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Al-Quds University, Abu Dis, Palestine

    Firas S. Q. Barakat

  2. Department of Finance and Accounting, Faculty of Economics and Business, University of Granada, Campus de Cartuja, s/n. 18071, Granada, Spain

    M. Victoria López Pérez & Lázaro Rodríguez Ariza

Authors
  1. Firas S. Q. Barakat
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. M. Victoria López Pérez
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Lázaro Rodríguez Ariza
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to M. Victoria López Pérez.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Barakat, F.S.Q., López Pérez, M.V. & Rodríguez Ariza, L. Corporate social responsibility disclosure (CSRD) determinants of listed companies in Palestine (PXE) and Jordan (ASE). Rev Manag Sci 9, 681–702 (2015). https://doi.org/10.1007/s11846-014-0133-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11846-014-0133-9

Keywords

JEL Classification

Search

Navigation