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Article
Publication date: 23 May 2022

Ahmed Elsayed Awad Bakry

Corporate social responsibility (CSR) has been one of the main subjects for companies’ sustainability in contemporary years. Engaging in CSR practices has been recognized to be…

Abstract

Purpose

Corporate social responsibility (CSR) has been one of the main subjects for companies’ sustainability in contemporary years. Engaging in CSR practices has been recognized to be beneficial for firms since it might create value for firm in the market. The process of creating value in recent era has been controlled by firms’ hidden resources and simultaneously the concept of value added intellectual capital (VAIC). This paper aims to determine whether intellectual capital (IC) and each of its three constituents (human capital efficiency [HCE], capital employed efficiency [CEE] and structural capital efficiency [SCE]) can generate improvements in CSR in an emerging market.

Design/methodology/approach

Using the Egyptian Corporate Responsibility (S&P/EGX ESG) index and extracting accounting data from the annual reports of companies listed on this index, an empirical analysis that considers VAIC and its elements was accomplished on a sample of 267 firm-year observations for a nine-year period beginning in 2010.

Findings

The empirical results of the multivariate regression indicated that Egyptian companies active in using IC have more tendency to engage in CSR practices. In addition, it is shown that HCE positively influences CSR practices, while SCE has a negative association with such social activities, and CEE has no significant relationship with CSR activities.

Practical implications

The results of the research have some implications through offering an enhanced understanding of using IC and CSR practices that might be in favor of several investors, regulatory bodies and scholars concerned with firms’ social activities. Besides, it provides empirical evidence that the efficient use of IC provides advantages not only for the stockholders but also for the community.

Originality/value

To the best of the authors’ knowledge, this study is one of the first studies to investigate Egyptian firms for IC and CSR topics. In addition, this study provides empirical evidence on this relationship from the Egyptian environment that is different from other cultural and institutional environments in which previous studies were conducted.

Details

Journal of Financial Reporting and Accounting, vol. 20 no. 3/4
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 18 September 2023

Ahmed Elsayed Awad Bakry, Zubir Azhar and K. Kishan

In 2015, Bursa Malaysia Berhad (BMB) issued the first edition of the Sustainability Reporting Guide (SRG 1.0) to aid Malaysian public listed companies (PLCs) in preparing…

Abstract

Purpose

In 2015, Bursa Malaysia Berhad (BMB) issued the first edition of the Sustainability Reporting Guide (SRG 1.0) to aid Malaysian public listed companies (PLCs) in preparing corporate social responsibility reporting (CSRR). After receiving users' commentaries, BMB issued the second edition of SRG (SRG 2.0) in 2018. Given the major amendments in CSRR regulatory guidelines, there is a need to analyze the readability of CSRR in light of the new guide and to investigate the combined effects of SRG 2.0 and the assurance of CSR information on the readability of CSRR.

Design/methodology/approach

This study employs two readability indices to compare the readability of CSRR ex-ante and ex-post the implementation of SRG 2.0 across a sample of Malaysian PLCs that maintained their market capitalization among the top 100 companies.

Findings

The practical findings of the multivariate regression revealed that the readability of CSRR is reduced after the introduction of SRG 2.0. Meanwhile, the readability of CSRR is positively influenced by combining the effect of SRG 2.0 and CSRR assurance.

Practical implications

This study provides empirical evidence that the amendment to CSRR has made CSR reports more challenging to read and thus reduces their communicative value. Therefore, in their quest to mandate more CSRR information from companies, regulators might need to consider advocating that such data is reported in a readable manner. This study also shows the influential role of CSR information assurance in enhancing the readability of CSRR.

Originality/value

This study helps assess the readability of CSRR among Malaysian companies after the adoption of SRG 2.0. It also contributes to the literature on CSRR, as the readability of such reporting within the context of Malaysia has not been widely examined in previous studies.

Details

Management Decision, vol. 61 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

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