Virtus InterPress

QUANTITY VERSUS QUALITY: THE VALUE RELEVANCE OF CSR DISCLOSURE OF SAUDI COMPANIES

Khaleed Alotaibi, Khaled Hussainey

DOI: 10.22495/cocv13i2p15

Abstract

We offer a novel contribution by examining the impact of Corporate Social Responsibility (CSR) disclosure quantity and quality on firm value. We use a sample of 171 non-financial firms listed in the Saudi stock market for the period 2013-2014. We complement and extend the work of Hasseldine, Salama and Toms (2005) by measuring the quantity and quality of CSR disclosure and examining their impact on firm value. To measure CSR disclosure quality, we following Beest el al (2009) and capture all qualitative attributes of information quality as defined in the conceptual framework of the IASB (2010 a). We use a CSR disclosure index to measure the quantity of disclosure. Our analysis shows a positive association between CSR disclosure quality and quantity and market capitalisation. However, we did not find the same results when we use either Tobin’s Q or Return on Assets (ROA) as proxies for firm value. This suggests that both CSR disclosure quantity and quality have the same impact on firm value. However, the significance of this impact depends on whether the authors use market capitalisation, Tobin’s Q or ROA.

Keywords: Corporate Social Responsibility, Disclosure Quantity versus Quality, Firm Value, Saudi Arabia

How to cite this paper: Alotaibi, K., Hussainey, K. (2016). Quantity versus quality: the value relevance of CSR disclosure of Saudi companies. Corporate Ownership & Control, 13(2), 167-179. http://dx.doi.org/10.22495/cocv13i2p15

Download This Article
Corporate Governance Experts Global Repository
Merio Honor Честь
Ryoushin Conscience Совесть
Kouki Nobility Доброе имя