The corporate business environment is surrounded by strong public scrutiny from diverse stakeholder groups that are calling on businesses to accept accountability for not only their financial actions, but also the non-financial implications of their activities. Many corporate businesses are today paying attention to the needs of their stakeholders of social and environmental information. As such, in this study we examined how corporate characteristics could influence the amount of Corporate Social and Environmental Disclosure (CSED) in the manufacturing sector in Jordan. Firm size, profitability, audit firm, ownership, type of industry and financial market level are the main factors examined in this study. Drawing from Ernst and Ernst methodology, the study developed a disclosure index to measure the amount of CSED for three years (2010, 2011 and 2012). Using panel data regression, we model the relationship between disclosure amount and the key drivers of CSED via random effect estimation. The results of our model indicated that the firm size, type of audit firm and financial performance in Amman Stock Exchange (ASE) are significantly associated with the amount of CSED. On the other hand, we also find that firm profitability, age, type of industry and ownership are not related to the practices of CSED.
|Number of pages||28|
|Journal||journal of Accounting and Auditing: Research and Practice|
|Publication status||Published - 17 Feb 2017|