The Effect of Corporate Social Responsibility Practice on Corporate Financial Performance Evidence from Jordan

Alshannag, Fadi Mohammed; Basah, Mohamad Yazis Ali; Khairi, Khairil Faizal

doi:10.12816/0036829

Cited by 5 publications

(9 citation statements)

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“…CSR is voluntary activities that are taken by a firm to run in a socially, economically and environmentally sustainable manner (Alshannag et al, 2017). Ahmadian & Khosrowpour (2017) explained that CSR is known as different terms, for example, corporate social responsiveness, corporate citizenship, strategic philanthropy, and global citizenship, etc.…”

Section: Studies Regarding Corporate Social Responsibilities (Csr)mentioning

confidence: 99%

Literature Review on the Association between Earnings Management and Corporate Social Responsibility

Parvin¹,

Rana

Shams

2020

ijafr

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This paper aims to give an overview of the existing literature on the Earnings Management (EM) and Corporate Social Responsibility (CSR) relationship in different countries. This paper reviews preceding studies concerned about EM, CSR and their relationship. Out of 23 works of literature, 11 studies found a negative relationship, 6 studies found a positive relationship, 2 studies found blended relationships in case of different situations and 4 studies found no connection between CSR and EM. Most of the results demonstrated that probably the socially responsible organizations have a negative correlation with EM practice. The types of the relationship depend on cause-effect relationship, information asymmetry, how can a company use resources, awareness on environmental issues, awareness on ethical issues, tax avoidance tendency, corporate governance practice, nature of the firm, political environment, opportunistic incentive, and stakeholder capital, manager's psychology, etc. Relationships between EM and CSR influence on earnings quality, firm performance, and firm value.

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Section: Studies Regarding Corporate Social Responsibilities (Csr)mentioning

confidence: 99%

Literature Review on the Association between Earnings Management and Corporate Social Responsibility

Parvin¹,

Rana

Shams

2020

ijafr

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“…Firms use several methods for CSR practices measurement with the four major ones highlighted by Alshannag et al (2017) and Pradhan and Nibedita (2019) as reputation indices and databases, content analysis, actual CSR activities spending and survey. In particular, reputation indices and databases categorize firms based on the direction of CSR achievement (e.g., Fortune Reputation Index, Kinder, Lydenberg Domini (KLD)).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Also, the survey questionnaire was adopted by Al-Moumany et al (2014) and Edmans (2012) for the measurement of CSR's environmental, social and economic dimensions. Actual spending on CSR activities was used by Alshannag et al (2017) and Weshah et al (2012) for the same purpose.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…A great proportion of literature in this field focused on the CSR spending-financial performance relationship including Alshannag et al (2017), Al-Shwiyat and ALRjoub (2013), Aras et al (2010), Bagh et al (2017), Fernandez (2016), Fernita et al (2014), Fiori et al (2007), Jitaree (2015), Karlsson et al (2015), Koo (2016), Lins et al (2017), Pava and Krausz (1996), and Weshah et al (2012)-all of which reported mixed results. In other words, researchers have yet to reach a consensus on the relationship between CSR and financial performance, with some studies reporting a positive relationship, others a negative one, and some others reporting the lack of significant relationship between them.…”

Section: Introductionmentioning

confidence: 99%

“…The findings are also inconsistent, shrouding the relationship between CSR and financial performance in total ambiguity and coupled with the relationship's complexity, controversy, it is no surprise that inconclusive findings were found. This necessitates further studies to be conducted in the area as recommended by Weshah et al (2012), Jitaree (2015) and Alshannag et al (2017). Moreover, the rationale to choose service sector is the intangibility of output, relationships with customer and other stakeholders (Lee et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Analysis of the relationship between corporate social responsibility (CSR) spending and market stock price among Jordanian service firms

Odeh

Alshannag

Eneizan

et al. 2020

Cogent Business & Management

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In this study, the relationship of corporate social responsibility (CSR) spending and Market Stock Price was analyzed. The study sample comprised of 102 services firms listed on the Amman Stock Exchange (ASE) for the years 2010 to 2017. In particular, CSR spending reflects the actual CSR activities monetary contributions that are mandated to be disclosed in the firm's income statement. This study adopted the Generalized Method of Moment (GMM) to analyze the CSR spending-Market Stock Price relationship. The control variables included firm size, leverage and ownership. Based on the findings, no significant relationship exists between CSR spending and market stock price (MSP) in any direction. Added to this, control variables had no effect on MSP. However, the findings showed a significant positive effect of firm size on CSR spending and a negative effect of leverage on CSR spending, with no significant effect of ownership on the same. This study has several implications for the enhancement of the information and understanding of the firms' Market Stock Price as it shed light on the CSR spending-Market Stock Price relationship. Moreover, the study findings contribute to literature concerning CSR practices in the context of developing nations.

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Employing Organizational Capacity Components in Enhancing Corporate Performance

Mustapa

Malak

2019

HSSR

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Purpose: Ongoing investigations on modern markets demonstrated that organizational limit structure some portion of the organization’s environment that affect its performance. Knowing its standing to the industry, a recent study inspected the effect of organizational capacity on business performance in Malaysia. The research focuses on attaining two objectives. Firstly, to analyze the perceptions of Malaysian listed companies’ directors on business capacity components. Secondly, to analyze whether different components of organizational capacity effect the performance of organizations listed in Malaysia. Methodology: A questionnaire survey and the regression analysis have been used in obtaining the data and answering the research questions respectively. Main Findings: The consequences of this study show that company structure plays an important role in manipulating the organization’s performance. Nonetheless, organizational learning was established not to explain Malaysian companies’ performance. Hence, the results assist the firm in their hunt for better performance through using suitable business resources. Implications/Applications: Recognizing organizational structure as an important organizational capacity element might improve the performance of local business in the market to withstand competitive advantage.

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The Effect of Corporate Social Responsibility Practice on Corporate Financial Performance Evidence from Jordan

Cited by 5 publications

References 0 publications

Literature Review on the Association between Earnings Management and Corporate Social Responsibility

Literature Review on the Association between Earnings Management and Corporate Social Responsibility

Analysis of the relationship between corporate social responsibility (CSR) spending and market stock price among Jordanian service firms

Employing Organizational Capacity Components in Enhancing Corporate Performance

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