Corporate Social Responsibility Disclosure and Stock Market Liquidity: The Case of Jordan

Ruwaidah H. Haddad, Ayman E. Haddad (), Ayham Haddad and Nabeel Sawalha
Additional contact information
Ruwaidah H. Haddad: Department of Accounting, Yarmouk University, Irbid P.O. Box 566, Jordan
Ayman E. Haddad: College of Business and Economics, American University of Kuwait (AUK), Safat 13034, Kuwait
Ayham Haddad: Kellstadt Graduate School of Business, DePaul University, Chicago, IL 60604, USA
Nabeel Sawalha: College of Business and Economics, American University of Kuwait (AUK), Safat 13034, Kuwait

Sustainability, 2023, vol. 16, issue 1, 1-14

Abstract: This study aims to evaluate the level of corporate social responsibility (CSR) disclosure in the annual reports of Jordanian companies, and to examine its impact on stock market liquidity. The findings indicate a significant variation in the extent of CSR disclosure among the companies, with an average disclosure rate of 48.12% of the applicable items. The regression analysis results show no significant relationship between CSR disclosure and the bid–ask spread. The study concludes that investors do not heavily rely on CSR disclosures when making decisions about trading involving Jordanian companies. This lack of dependence may be attributed to such information’s perceived inaccuracy or incompleteness. Investors may turn to alternative sources of information, such as news sources, and even advice from their networks.

Keywords: financial reporting; stock market liquidity; CSR disclosure; Jordan (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/1/88/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/1/88/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2023:i:1:p:88-:d:1304633

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().