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

Category: Business & Management Paper Type: Dissertation & Thesis Writing Reference: APA Words: 1076


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.

Disclosure of CSR per item

Items

Score

Percentile

The firms are operating in the countries are located as

54

53.26

Markets serving nature

56

55.84

On the several related information

59

58.70

The firm's activities scopes and size

47

47.17

Impacts of the environmental and social indicators

44

44.38

The safety and quality of the product

48

47.75

To the ISO 14001 the main operating operations

55

54.38

Suppliers and transports environmental impacts

56

56.46

Consumption of the use of energy and electricity

48

48.54

resources of eth used materials

59

60.06

diversification of the employees according to gender

51

52.20

employees’ lines of business distribution

50

52.15

employees training and education program

46

48.15

Policy statement for equal opportunity

36

36.98

pay awards and disable employees

47

46.90

The supported education program

48

47.31

supporting initiatives and projects for community

49

47.26

Scholarship program for the students' recruitment

57

53.94

supporting camping of government

50

49.21

Medical research and supporting program

51

50.00

Average

50.4

 

 

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

It is evaluated by the annual reports of the selected firms for investigating the items of the disclosure index, and the above-given table is representing the scores of the different objects according to their proper percentile. The scores vary between the maximum 59 and the minimum 0, and the average of the scores is 50.4, and the percentile of the index of the CSR are relatively according to its standard.

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

 

N

Min

Max

Mean

Std

CSR

10

20

80

50.41

17.21

Size

10

1,215,551

322,455,422

43,224,681

99,174,778

Performance

10

-22.60%

48.78%

2.80%

19.89%

Government ownership

10

5.00%

70.00%

25.81%

23.35%

Raised Capital

10

729,847

163,921,633

21,497,973

50,366,102

Audit Firm size

10

-

-

-

0

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

The above-given table is representing the descriptive analysis of all variables which are used in this study. The index which is used in this study is also in the above-given table. It is showing in the above-given table that the disclosure of the CSR is moderate relatively because few of the companies have provided the all the 20 items meanwhile the fewest companies have not offered the few of the things. The assets of the companies are using for measuring the size of the company. These assets are lies between the 1,215,551 and   322,455,422 and mean of the performance of the company can be estimated as the 2.80, and the government ownership mean the 25.81% while the mean for the raised capital is 21,497,973 which is showing the averages of the borrowed money in the industry. The audited firm size is shown as 0 value because no big firm has audited theses all firms.

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

Regressor

 

 

 

Coefficient

Standard Error

t-Ratio

Sig.

Intercept

50.54884

2.841096

17.79202

5.86E-05

Size

5.1-08

1.7807

0.028835

0.7874

Performance

-14.0576

11.04434

-1.27283

0.272027

Government ownership

0.2736

13.52983

-0.02022

0.984835

Raised Capital

0.145

0.212

65535

0

Audit Firm size

0

0

65535

0

Debt

1.17-07

3.38E-07

0.346035

0

 

 

 

 

Dependent Variable: CSRD

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

The regression equation is constructed by applying the equation which shows the least squares, and it was found by the given formula which showing a = 50.54884 and b = 5.1-08, -14.0576, 0.2736, 0.145, 1.17-07 respectively it is demonstrated in the column of the coefficient an above-given table. The equation for the regression is shown as;

Y = 50.54884+ b 5.1-08 +-14.0576+ 0.2736+ 0.145+ 1.17

In the above-given table, the values of the coefficient for firm size, Government ownership, raised capital, and debt are showing it has a positive relationship with the dependent variable as CSRD. It means by increasing the firm size, Government ownership, raised capital and debt the CSR disclosure of the public listed companies will also increase. The significance values for all of these independent variables are less than 0.05 which shows all the variables have positive as well as the significant relationship. Meanwhile, the performance of the firm has a significant negative relationship with CSRD it means the performance of the firm accepting the null hypothesis while the other remaining variables are accepted the alternatives hypothesis.   

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

Model

R

R Square

Adjusted R Square

Std. The error of the Estimate

10

0.75184513

 

0.5652711

 

-0.228140025

 

1.05488


Interpretation

The value of the r=.75184513, which is showing significant positive relationship between the CSRD and independent variables because the valuer is almost round about the 1.00 and r square value is 0.5652711 which shows56 % influence and variations are founded in the independent variables it also has 56 % influence on the other variable as CSRD.

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

 

Size

Performance

Government ownership

Raised Capital

Audit Firm size

Debt

Size

1

 

 

 

 

 

Performance

0.200887

1

 

 

 

 

Government ownership

0.68661

0.683937

1

 

 

 

Raised Capital

0.996234

0.201272

0.706009

1

 

 

Audit Firm size

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

1

 

Debt

0.996051

0.198924

0.66139

0.984602

#DIV/0!

1

CSR

0.01048

-0.71498

-0.4375

-0.00241

#DIV/0!

0.023596

Interpretation

The Pearson correlation has applied to this analysis because there is only one dependent variable while the remaining variables are independent variables. This shows the statistically significant association between the sizes, performance, government ownership, raised capital, audit firm size and debt are positively correlated with the CSRD. The Pearson statistic is calculated 1.00** for the CSRD which shows the relationship is suitable for all variables. The value of the correlation for all independent variables is displayed a positive association with CSRD. The costs for all variables are roundabout the 1, and it’s enough to explain the significant positive involvement of the variables as shown in the study of the (Ali Al-Gamrh, 2016)

Reference

Ali Al-Gamrh, R. A.-D. (2016). Disclosure, Firm Characteristics and Corporate Social ResponsibilityBakr. t International Business Management, 10(18), 4283-4291,.

 

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