Corporate Social Responsibility and Corporate Performance: Does Financial Reporting Quality Matter?

Authors

K. M. Alharbi, College of Business Administration (Yanbu), Accounting Department, Taibah University, Yanbu, Saudi ArabiaFollow
N. T. Hassan, Business Administration College, Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi Arabia\\ Faculty of Commerce, Department of Accounting, Benha University, Benha, EgyptFollow
R. Hussein, Faculty of Commerce, Department of Accounting, Benha University, Benha, EgyptFollow

Abstract

This study aims to analyze the role of social responsibility in times of crisis, where the study examines whether the role of social responsibility in the corporate performance will depend on its interaction with other basic aspects of the corporate business environment. In the contemporary economic context, information environment considers important aspects of the business environment, therefore, it can be suggested that the impact of social responsibility on the company’s performance will be clearer when considering its interaction with financial reporting quality. To test this argument, data from the Saudi business environment for the year 2020 was collected to explore the relationship between social responsibility and the company’s financial performance during the Corona pandemic, and the role of the financial reporting quality in that relationship. The results were largely consistent with the general argument of the study, the results showed that social responsibility does not affect the financial performance, but the interaction between it and the financial reporting quality positively affects the financial performance of the company during the pandemic period. Therefore, financial reporting quality play a major role in the extent to which social responsibility affects performance. The results represent a motivation for the various parties in the business environment to pay attention to the general framework of the companys business aspects when analyzing performance.

Recommended Citation

M. Alharbi, K.; T. Hassan, N.; and Hussein, R. (2023) "Corporate Social Responsibility and Corporate Performance: Does Financial Reporting Quality Matter?," Information Sciences Letters: Vol. 12 : Iss. 4 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol12/iss4/20