Government Ownership as a Catalyst: Corporate Governance and Corporate Social Responsibility in Jordan’s Industrial Sector

Abdelrazaq Farah Freihat () and Renad Al-Hiyari
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Abdelrazaq Farah Freihat: Department of Accounting, Faculty of Business, Al-Balqa Applied University, P.O. Box 7075, Al Salt 19117, Jordan
Renad Al-Hiyari: General Budget Department, P.O. Box 1860, Amman 11118, Jordan

JRFM, 2025, vol. 18, issue 5, 1-28

Abstract: This research examines how corporate governance (CG) affects corporate social responsibility (CSR) disclosure with government ownership as a moderation factor by analyzing panel data from 30 industrial firms listed on the Amman Stock Exchange during 2018–2022. The study employed board of directors and audit committee characteristics as independent variables to represent CG while developing a CSR disclosure index. The research controlled for company size and financial leverage in its model. The findings demonstrate that corporate governance dimensions affect CSR disclosure, while government ownership significantly enhances this relationship in a positive direction. Government ownership increases R 2 values, which shows that corporate governance merged with government ownership modifies the corporate governance and CSR disclosure relationship by strengthening the impact when government stakes rise. Statistical analysis revealed that board independence, board duality, audit committee size and independence, along with audit committee meeting frequency, all had positive effects on CSR disclosure. The study found no statistically significant effect of board size, frequency of board meetings, or the financial expertise of audit committee members on CSR disclosure. Based on the findings, this study outlines recommendations to strengthen governance practices that support social disclosure.

Keywords: corporate governance; corporate social responsibility; government ownership; moderating impact; Jordan (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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