The Effect of Social Responsibility Accounting Disclosure on The Financial Performance of Jordanian Industrial Companies

Bilal Fayiz Omar, Eshaq Mahmmoed Al Shaar, Nida Omar Zalloum

Abstract


The main objective of this study is to examine the effect of social responsibility accounting disclosure (SRAD) on financial performance for Jordanian industrial companies. The SRAD is divided into four dimensions: environmental issues, human resources, community relations and product quality.
A content analysis design was adopted and a SRAD index was constructed covering all the activities related to the four dimensions above. A sample of 58 industrial companies for five years (2005-2009) was selected to fulfill the objective of the study. Multiple regression analysis was used in order to achieve the main objective of the study. In regards the effect of the SRAD dimension of the company’s financial performance, the study found that the product quality activities increase the financial performance, while the other dimensions were not affected. Finally, the study discusses the implications of the importance of SRAD in Jordan, recommendations for improving SRAD in Jordan.

Keywords


Social Responsibility Accounting Disclosure, Financial Performance, Jordanian Industrial Companies

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