The association between Corporate Social Responsibility Disclosure and accounting-based financial performance: a Kuwaiti evidence

Abstract

The current study aims at extending prior accounting research on the association between Corporate Social Responsibility Disclosure (CSRD) and Corporate Financial Performance (CFP) using a sample of listed firms on Kuwait Stock Exchange (KSE) from 2011 to 2012. It conducts a regression analysis to investigate the association between CSRD and CFP, as well as investigates the impact of firm size, leverage, and industry affiliation as the key determinants suggested by prior research on the level of CSRD. The results of the present study reveal that both CFP and firm size have significant positive associations with CSRD, whereas, in contrast, firm’s leverage and firm’s industry affiliation show non-significant associations with CSRD.

CSR expenditure, mandatory CSR reporting and financial performance of listed firms in India: an institutional theory perspective

“…Mandatory and voluntary studies on CSR has also received attention in both developing and developed economies (Mobus, 2005;Ackers and Eccles, 2015;Fatima et al, 2015;Kend, 2015;Arena et al, 2018;Karaman et al, 2018;Khan et al, 2019). Furthermore, previous studies also showed a mixed association between firm performance and CSR (Rodríguez-Ruiz et al, 2016;Al-Hajri and Al-Enezi, 2019).…”

“…The existing literature provides a link between CSR expenditure and financial performance and also between CSR policy and financial performance but with mixed findings (Manchiraju and Rajgopal, 2017;Shahbaz, 2018;Buallay, 2019;Choi et al, 2019). Similarly, there is a link between financial performance and CSR (Rodríguez-Ruiz et al, 2016;Al-Hajri and Al-Enezi, 2019). However, there are no studies that examined the moderating effect of mandatory CSR reporting in the association between CSR expenditure and financial performance.…”

“…Furthermore, CSR and financial performance studies are incomplete without examining bi-directionally, the effect of financial performance on CSR expenditure. Just as the relationship between CSR and financial performance showed mixed association, the relationship between financial performance and CSR (Rodríguez-Ruiz et al, 2016;Al-Hajri and Al-Enezi, 2019) also showed mixed associations. For example, the authors of a study investigated the bi-directional relationship between CSR and financial performance in Spanish listed companies.…”

Slack resources and firm performance: evidence from GCC countries

“…Second, the paper also contributes to agency theory (Jensen, 1986) by examining the principal-agent problems that may arise from holding liquid resources in the GCC. Finally, this paper extends our knowledge of how the institutional environment, particularly in emerging economies, may influence the quality of a firm's cash management practices (Al-Amri et al, 2015).…”

“…The prevalence of oil production in the GCC market enabled many firms to accumulate and allocate their liquid resources to value-generating opportunities . Further, the GCC provides an important context in terms of institutional development and governance practices (Al-Malkawi et al, 2014), which influences how decision-makers allocate the firm's slack resources in these emerging markets (Al-Amri et al, 2015;Malen and Vaaler, 2017). To examine this relationship, we first unpacked slack resources to available, recoverable and potential slack (Daniel et al, 2004;Titus et al, 2022), and then proceed to investigate their separate effects on a firm's financial performance in the GCC economies.…”