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

Two types of the research methods are used for conducting the research study Qualitative and Quantitative the Qualitative research method is leads towards the understanding of the underlying reasons and opinions which is used for the help of developing the new and innovative ideas in the research and for quantifying the attitudes, behaviors, and beliefs. For measuring the research problem, the quantitative technique is used by creating numerical data and then transforming it in the useable statics.  Statistical and mathematical data analysis can be emphasized by using this technique. Polls and questionnaires are used for collecting the data in the qualitative research method and then the results can be suitably compared, summarized and generalized. This method is used for explaining, describing, understanding, and exploring the phenomenon of the research while the quantitative technique addresses the objectives of research through empirical assessment (Greener, 2008).

The reach design is of both qualitative and quantitative the type of research design is selected due to low resources and less time. This research study is aimed at measuring the relationships of the firm’s characteristics with CSR. The secondary source of the data is used in the research study. The secondary information is that which was from the public listed firms in the Saudi Stock Exchange as Tadawul, and the literature of the research study.

The quantitative data is used in this research for collecting as evidence or proof of the more authentic techniques for conducting the research related to the relationships of the firm’s charters tics with the CSR. Moreover, it is stated by the author the quantitative methods are considered as a significant trend for small business research. Also, this method is regarded as appraised related to more concerned with measurement analysis for evaluating the enhancement.

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

The secondary data is used in the research study. This research is secondary data for achieving the final results. It will be explored the literature and existing knowledge as secondary data. The data will be collected through the annual reports of the listed companies for this research. The quantitative data is received from the public listed companies of Saudi Arabia who are providing the services to the various company at the current time. The sample size for collecting the data is ten construction companies of Saudi Arabia, and the total 42 companies are listed in the Tadawul, the Saudi Stock Exchange but the only ten companies are selected from them for conducting the analysis as well as for measuring the relationships of the variables.

The ten company are selected randomly by using the list suppliers which was taken from the web site of the Tadawul, the Saudi Stock Exchange. The selected companies according to their names are given below, and the construction companies are selected for this project just because of the in such industries firms are challenged with environmental protection and social responsibilities. As most of the previous studies by using the listed firms' annual reports, the Secondary data is collected. The raw data of the form is provided in the Appendix (See appendix).    

The participants who are taken as the sample and evaluated for this research are the internal and external factors of the construction companies of Saudi Arabia. They are made for measuring the performance of the organization and the potential risks exposing from the companies for the SCR. This research study is also aiming high level of enhancement of the SCR. This research is following a positivist paradigm, and this research supports a quantitative approach. The purpose of using the positivist paradigm and mixed method approach is to get the valid results in less time. The list of the companies is given below which are selected as the sample for conducting the research study.

·         SSP

·         CHEMANOL

·         SABIC

·         TASNEE

·         Alujain

·         YANSAB

·         Sahara

·         Saudi Kayan

·         Najran

·         Cement

·         Jouf Cement

Variable definitions
Dependent variable (CSRD)

Content analysis method our dependent variable in this study is corporate social responsibility disclosure (CSRD). For measuring the context of the CSR reporting according to the annual reports of the firms, a content analysis technique is performed as an instrument using to measure the CSR disclosure. In the revelation of the CSR, Content analysis has been widely used. The definition of content analysis that has been vastly used among previous researchers in CSR field can be defined as the method which is used for gathering the data that is consisting on the collective qualitative information in the literary and subjective form for categorizing in order to assisting the scales of the quantitative evidence which is differ from the levels of the complexity.

The disclosure of corporate social responsibility offers information to people about firms and their activities with its consumers, employees, community, and even the environment. CSD is merely classified as disclosures which are voluntary since not a single regime of financial disclosure require it Companies Act, the rules of stock exchange, and accounting standards. The declaration which is corporate social can be simplified as the non-financial and financial information’s provision regarding a firm’s interaction with its environment that is physical and social as per individual social reports and annual report (Roshima Said, 2009).

Independent variable

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

The size of the company is determined in terms of company image which in turn can be measured by activities’ volatility. It is viewable from different perspectives. Information’s disclosure and accumulation cost not usually compared to firms which are smaller; larger corporations’ management is more likely to understand the information disclosure’s possible benefits like the ease in financing and greater marketability; it might be felt by smaller firms that their competitive position might be threatened by the information disclosure.

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

The company usually discloses the more information at that time when these companies provide the company attempt to raise money and the more details for attracting more investors as well as for increasing, the more funds. The several author's firms argue it can seek for building the more capital and disclosing more information according to the performance of the CSR for reducing the information asymmetry

Audit firm size of The Impact of Firm Characteristics on Corporate Social Responsibility Disclosure: Evidence from Saudi PLCs

These are those companies which are seeking on the excellent quality of the finical reporting as well as for hiring the good auditor which are expected for disclosing the information, and it can be more transparent for the performance of the CSR. Forgetting more customers is the concern of the smaller auditing companies, and it is not good for the large firms, and it does not seem like to rely on the few customers. So that the clients of the large auditing firm can be pushed for more disclosure.  

Government Ownership the Impact of Firm Characteristics on Corporate Social Responsibility Disclosure: Evidence from Saudi PLCs

For the various activities of the government companies, the attention of the public companies and government bodies are required. These companies must be having a social agenda as well as social friendly. The most important and one of the means of the proper CSR disclosure the government must be followed and offer high transparency as well as the stricter rule. There are several studies which are providing strong evidence related to the positive relationship of the CSR disclosure and government ownership. 

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

For the group of the financial stakeholder debt holders are considered as another most essential key and the board is directly answerable to them. For all these purposes the management provides the incentives for the disclosure and the management take decision for reducing the cost of the capital of the company. 

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

Ordinary least square model (OLS) was used to accessing the relationship among the CSR disclosure and firm characteristics. Using the State software package to run our regression model. The regression model is based on the study variables described in the theoretical framework and hypotheses development section along with control variables. Consequently, the regression model is formulated as follow:

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

After collecting the data for the research study, the data is analyzed by using the various formulas on Ms. Excel, and all the test are conducted for the research study. Two types of analysis are conducted for the research study as descriptive and inferential analysis.

References

Greener, S. (2008). Business Research Methods. Bookboon.

Roshima Said, Y. H. (2009). The relationship between corporate socialresponsibility disclosure and corporategovernance characteristics in Malaysianpublic listed companies. SOCIAL RESPONSIBILITY JOURNAL, 5(2), 212-226,.