The Impact of Social Responsibility Disclosure on Financial Performance Via Accounting Conservatism as A Mediator Variable: Evidence from Jordan

Mohammad Abdullah Fayad Altawalbeh

International Journal of Business and Management, 2023, vol. 16, issue 12, 101

Abstract: This study aimed to investigate the direct effect of corporate social responsibility disclosure (CSRD) on financial performance as well as the indirect impact via accounting conservatism as a mediator variable. The sample of the study consisted of 45 industrial companies listed on Amman stock exchange (ASE) over the period 2015-2019, CSRD was measured using a 43-item index, data to measure the variables was collected through the financial reports of the study sample publicly available on ASE website, Smart PLS3 software was run to examine the study hypotheses, the results of the path analysis revealed that CSRD has a positive significant direct effect on financial performance, furthermore, accounting conservatism has a positive and significant effect on financial performance, this result prove that accounting conservatism has a complimentary partial mediation role between CSRD and financial performance, a partial mediation occurs when the direct impact of the exogenous (CSRD) remains significant along with the indirect impact in the mediation model, furthermore, it is a complementary mediation that occurs when the indirect effect and direct effect remain significant and in the same direction. The study recommends that external auditor evaluate and communicate the CSRD level within the auditor’s report.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijbmjn:v:16:y:2023:i:12:p:101

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