Introduction of The Impact of Firm Characteristics on Corporate Social Responsibility Disclosure: Evidence from Saudi PLCs

The emerging topic is related to the various characteristics of eth firms and their impacts on corporate social responsibility and the disclosure of corporate social responsibility. The public listed companies of the eth kingdom of Saudi Arabia has been used as evidence for conducting the research study. In many firms the programs of the active investor can be underlines for their executive’s beliefs and the disclosure strategy is known as the tool for creating the critical value. The initial focuses of the firm can evolve from, and the initial focus is on the financial statement, and financial information and the disclosures strategy are also included in this according to all aspects of the performance of the firm.

There are several benefits which are provided by the policies of the open disclosure.  The information of the firms is released by the scale and scope of the organization. According to the extent of the disclosure strategy of the firm the prominent places are occupied typically by the environmental disclosure. For determining the quality of the declaration of the environment, three types of influences are subjected by the firms which are fundamentally driven for the closed accountable of a specific group of the stakeholder. The top management of the firm is directly answerable to the debt holders and shareholders.  The cost of capital of the firm can minimize by using the incentives of the disclosed values related to the information of the firms.

 The proper information also can be used for the quality mix of the products. They are underlying the information cost of the assets of the firm which is used by the investors against the firm’s financial condition in the absence of corporate disclosure.  For their incurred potential cost its ability can be predetermined which can be the results from the third parties by using the information of the proprietary and it can be disclosed by the detriment of the firms (Denis Cormier, 2005). 

The social responsibilities are increasing from the last several years by investors, corporations, and governments and it is considered as the urgent and distinctive just because of the global crisis which is playing a central role in this. The immediate response is required for the breakdown of the financial markets, food shortages and a decline in the severe economic. More and more entities use corporate non-financial reporting. It also includes the environmental, economic and social impact for the operations of the companies and it is not considered as the tools of its accountability but also used for driving the strategy, and it is also used for eth unlocking the various sources of the growth and revenue. For altruistic reasons, Companies are not turning toward sustainability and for building sustainability tools for the strategies of the business.

The demand for the disclosure of the most essential listed companies of the Kingdom of Saudi Arabia the extra pressure has been placed with the critical stock exchange. The quality of corporate reporting can be increased by setter’s standards. For the financial environment of the companies can be hard for managing and reporting h the world best companies. The board committees are formed in many companies which are taking the responsibility of the sustainability of the boards.

It is argued by criticism of the environmental and social reporting the enhancing of the limited amount of disclosures and corporate social responsibility (CSR). The duties of the organization can be measured swell as describes by the corporates social responsibility. The reporters of the corporate social are not behaving in eth responsible way which is concerning with the sustainability of the organization. In sustainability, the organizations have good intentions towards sustainability, but the purposes cannot transform for the results and actions (W.A.N, 2016).

In the last several years the corporate social responsibility has been experiencing as an increasing amount of public awareness just like as the new concepts related to the commitments of the corporates for the environmental and social initiatives and it is used to achieving the widespread popularity for the stakeholders just like suppliers, creditors, investors, managers, customers, policymakers, and employees.  For corporate social responsibility, scholars have dedicated greater attention. Corporates Social responsibility can be defined as the flexible allocations of eth resources of the corporate for improving eth social welfare which can serve as the means for enhancing the relationships of the key stakeholders.

The Corporate social responsibility disclosure can be considered as the ethical responsibility of firms, and the provision of financial and non-financial information can be defined by this term which is related to the interactions of the corporation as well as its physical surrounding of the environment.  It is also known as the process of the reflection of the information which represented for the reporting of the situation, human resource, products, and consumers as well as for those firms which are participating in the activities of the community for society in general term. In the context of the kingdom of Saudi Arabia the concept of the corporate social responsibility is still new, and in this area the empirical research is rare, and the public listed companies of the KSA is considered as the attractive field for the phenomena of the study.

The structure of the remaining study can be followed as; the next part of the research study will provide the previous literature related to the given research. At the end of this section of the research study the development of the hypothesis and theoretical framework which are adapted for this study. The third section of the research study is known as the subsequent section of the survey which describes the methodological which is used for the research study. It includes research design, sources data, sample, and data collection, definitions of the variables, empirical model and technique, and analysis.  The section four of the research study is explaining about the report of the research study which is conducted after collecting the data from the TADAWUL for 2017 and 2016, and the section five of the research study shows the discussion and empirical results. At the end of the research study, the last chapter is providing the conclusion of the research study.

The significance of the research study on The Impact of Firm Characteristics on Corporate Social Responsibility Disclosure: Evidence from Saudi PLCs

The research study will contribute to assisting the practitioners, academics and the government authorities for explaining and identifying the relationship among the characteristics of the firm and CSR disclosure for reporting the sustainability. On these topics, the results of the study can compensate for the lacking views of the study. The research study is also providing the various points of the reference for the companies in emerging economies which is used to seeking the implementation of the sustainability of the report.

The research study is also contributing to the existing literature review according to the many important ways. This study will also provide to measuring the annual reports of the ten companies, and the different level of the disclosure also can determine by analyzing the annual reports of these companies. The research is significant for measuring the prior determinants of the social exposure of the different companies which will be subsequently used for testing and utilizing the obtained disclosure of the measures.

The research study is individually significant for testing the determinants of social disclosure from the perspectives of the political and legitimacy economy which must be performed in good manners.   The research study is also significant for measuring the relationship of the mechanism of corporate governance as well as CSR disclosure (Farook, 2011). The research study is also providing empirical evidence related to the nature of the determinants of the social exposure of several companies.

The scope of this research will be significant in addition to the literature, and it will provide sufficient knowledge about how the firm’s characteristics are engaged in the SCR practices for enhancement. Moreover, this research will contribute to understanding the barriers faced by the firm’s attributes while enhancing SCR practices and how motivating factors can outweigh those barriers. This study is significant for the policymakers of the firm’s symptoms related to the enhancement of SCR practices.

The importance of the innovative environmental damage also discussed in this study which is associated with the development and research procedures. Ecological disaster is addressed vastly for this research because sustainability is playing a crucial role in the firm’s characteristics for enhancing the practices of SCR in the companies of Saudi Arabia. The valid, accurate and accessible data can be stored by using technology in the firm.  The conflicts of contract and other documentation can be reduced by using the latest technology in the firm. 

Purpose of the Study on The Impact of Firm Characteristics on Corporate Social Responsibility Disclosure: Evidence from Saudi PLCs

The primary objective of the research study is to explore the characteristics of the company such as company, Size, Firm's Performance, Government Ownership, Raised Capital, Audit firm size, and Debt. These all characteristics have a significant relationship between the CSR disclosures and levels of the practices of the declaration on the annual methods. The purpose of this study is to know how the firm’s characteristics can enhance or contribute to SCR. This research is conducted for analyzing the SCR enhancement in the firm by evaluating the performance of the organization.

Aims and objectives of The Impact of Firm Characteristics on Corporate Social Responsibility Disclosure: Evidence from Saudi PLCs

The prime objective of the research study is to provide a description of the companies of Saudi Arabia as well as the practices of the CSR disclosure. Additionally, the research study is used to investigating the extent of the reports of the CSR in the evidence of the public listed companies of Saudi Arabia. The public listed companies of Saudi Arabia during the period of 2016 to 2017 for determining the critical characteristics of the firm for generating the reports of the CSR by identifying the various variables such as; Size, Firm's Performance, Government Ownership, Raised Capital, Audit firm size and Debt.

The objectives of the research study are to extend the scope of the existing empirical research for measuring the CSR disclosure of the businesses of the Arab countries. The study will provide the central view which will assist for filling the gap for the existing literature of the CSR in the Arab nations. The research study aims to communicate, improve and evaluates socially responsible practices which are required roles and responsibilities of the business in the society are enhancing, and it’s shown by the recent research on the CSR disclosure.

The primary aim of the research study measures how the characteristics of the firm can influence the sustainability of the CSR disclosure and from the characteristics of the firm how the interest of the stakeholders can be inferred as the characteristics of the firm and the corporate governance. The research study is also conducted for observing the size of the board directors in the presence of the audit committee which has a positive relationship with the supervision of the management.

Research Questions of The Impact of Firm Characteristics on Corporate Social Responsibility Disclosure: Evidence from Saudi PLCs

·         What is the relationship between the firm’s characteristics and corporate social responsibility for the public listed companies of Saudi Arabia?

·         What is the relationship between firm size and CSR disclosure?

·         How can the performance of the firm contribute to the practices of the CSR disclosure?

·         Why the government ownership is necessary for the CSR to disclose for the public listed companies of Saudi Arabia?

·         How is the raised capital necessary for the information of the CSR?

·         What is the relationship between the raised capital CSR disclosures for the public listed companies of Saudi Arabia? 

 References

Denis Cormier, M. M. (2005). Environmental disclosure quality in large Germancompanies: Economic incentives, public pressuresor institutional conditions? European Accounting Review,, 14(1), 3–39,.

Farook, S. K. (2011). Determinants of corporate social responsibility disclosure: the case of Islamic banks. Journal of Islamic Accounting and Business Research,, 2(2), 114–141.

W.A.N, G. L. (2016). THE EFFECT OF FIRM CHARACTERISTICS ON CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE IN SRI LANKAN BANKING SECTOR . Symposium of Accounting and Finance Researches.