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An-Najah University Journal for Research - B (Humanities)

Abstract

This study focused on the relationship between corporate social responsibility disclosure (CSRD) and the value of the company. It also examined how this relationship is affected by earnings management and corporate governance practices. The study includes 41 companies which constitute 85.4% of the companies listed on the Palestine Exchange (PEX) during the period (2012-2017). Data was obtained using content analysis and analysed using generalized least squares (GLS) regression. While a positive significant relationship was identified between CSRD and the value of the company, no significant effect of earnings management or corporate governance is observed on this relationship. The results showed that earnings management doesn’t significantly affect the level of CSRD or the company value. On the other hand, a positive effect of corporate governance on both the level of CSRD and the company value was reported. The study recommended that Palestinian companies should be more concerned about their social responsibility and its related disclosures. In addition, corporate governance practices of the Palestinian companies should be enhanced given its positive impact on the value of the company and on the level of CSRD. It is also beneficial to develop a local CSRD index to facilitate the evaluation of the Palestinian companies commitment to corporate social responsibility and its disclosure.

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