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The complementarity between corporate social responsibility disclosure and institutional investor in Jordan

Abdullah Daas (Department of Accounting, Middle East University Business School, Amman, Jordan)
Reem Alaraj (Department of Accounting, Middle East University Business School, Amman, Jordan)

International Journal of Islamic and Middle Eastern Finance and Management

ISSN: 1753-8394

Article publication date: 3 June 2019

Issue publication date: 3 June 2019

484

Abstract

Purpose

The purpose of this paper is to explore corporate social responsibility (CSR) disclosure and its relation to institutional investor (INSV) of Jordanian private listed companies (PLCs).

Design/methodology/approach

A unique sample of 159 largest companies over “a period of 8-years” listed on the ASE in terms of market capitalisation during the 2005-2012 period. Testing of hypotheses has been conducted by applying multivariate regression techniques using longitudinal data analysis of companies’ annual reports.

Findings

Results which confirmed earlier estimations indicated that there are positive and significant relationships between CSR disclosure (CSRD) and INSV. This result indicates that among the CSRD dimensions, INSVs are less concerned with companies engaging in community contribution practices and those related to the community involvement and product dimension in which the company operates.

Practical implications

Jordanian PLCs should be encouraged to be involved in CSR activities as one of their program strategies in attracting investment, as well as to improve their reputation and image in their social activities.

Originality/value

This paper conducts a comprehensive empirical evidence on the development of the relationship between the CSRD dimensions and INSV in Jordanian PLCs as an emerging market, where much existing evidence exists on this issue that may help in explaining difference in prior work.

Keywords

Citation

Daas, A. and Alaraj, R. (2019), "The complementarity between corporate social responsibility disclosure and institutional investor in Jordan", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 12 No. 2, pp. 191-215. https://doi.org/10.1108/IMEFM-10-2017-0272

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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