The relationship between CSR disclosure and financial performance in the Iraq public listed companies: firm size as a moderator
<p>Iraq corporations still perform below expectation and are yet to fully comply with the</p><p>requirement of International Accounting Standards (IAS). Past research on corporate</p><p>social responsibility (CSR) practices had sh...
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| Format: | thesis |
| Language: | eng |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=9790 |
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| Summary: | <p>Iraq corporations still perform below expectation and are yet to fully comply with the</p><p>requirement of International Accounting Standards (IAS). Past research on corporate</p><p>social responsibility (CSR) practices had shown positive effects on financial</p><p>performance. Thus, this research aims to examine the relationship between the CSR</p><p>dimensions disclosure and financial performance in Iraq corporations and the effect of</p><p>firm size on CSR and financial performance. This study further analyses the moderating</p><p>effect of firm size on the relationship between CSR dimensions and financial</p><p>performance. CSR in this study refers to reporting in the environment, employee,</p><p>community, product and governance dimensions. Financial performance is represented</p><p>by Return on Assets (ROA), Net Profit Margin (NPM) and Earning per share (EPS).</p><p>Stakeholders theory, legitimacy theory and agency theory are used to support the</p><p>linkage among CSR disclosures, firm size and financial performance in Iraq</p><p>corporations. Data were collected from annual reports of 27 selected companies listed</p><p>on the Iraq Stock Exchange (ISE) from 2016 to 2019. Panel data regression techniques</p><p>namely Fixed Effects Estimation and Random Effects Estimation in addition to Pooled</p><p>Ordinary Least Squares regression were carried out. The results showed that CSR</p><p>dimensions of employees and products positively influence the ROA and EPS, while</p><p>environment and governance negatively influence ROA, NPM and EPS. There is a</p><p>significant relationship in community dimension influence the ROA, NPM and EPS.</p><p>Furthermore, firm size significantly moderates the relationship between environment,</p><p>employee, community and product dimension of CSR with financial performance. This</p><p>indicates advantages for companies with a high level of firm size enable them to gain</p><p>investors' confidence. The study provides insights into the need to formulate policy on</p><p>the practice of CSR disclosure and firm size in Ira</p> |
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