Exploring the Impact of Corporate Social Responsibility on Leverage of Listed Companies in Oman

Afshan Younas () and Aza Azlina Md Kassim
Additional contact information
Afshan Younas: Arab Open University
Aza Azlina Md Kassim: Management & Science University

A chapter in Global Economic Challenges, 2023, pp 39-53 from Springer

Abstract: Abstract The purpose of this paper is to examine the association between corporate social responsibility (CSR) disclosure and the leverage of Omani non-financial listed companies, using data from the Muscat Securities market (MSM). A fixed-effect regression model is used to examine the relationship between CSR disclosure and leverage among non-financial listed companies of Oman. To measure the CSR disclosure of listed companies, an index has been developed which comprised 40 elements covering all aspects of CSR philanthropy. The paper finds that higher levels of CSR disclosure are associated with lower leverage levels. The relationship between CSR disclosure and leverage shows a strong negative relationship in the context of Omani firms. The paper concludes that CSR disclosure provides balance control to leverage of the public listed companies. This study is conducted to provide evidence of the CSR disclosure impact on leverage in Oman, a country where CSR disclosure is mandatory under corporate governance law and the capital market is still not well developed. This paper’s findings provide evidence that CSR disclosure by companies is useful to the board of directors and managers, as it controls the leverage of the firms.

Keywords: Corporate social responsibility disclosure; Leverage; Corporate governance; Non-financial companies (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-3-031-23416-3_4

Ordering information: This item can be ordered from
http://www.springer.com/9783031234163

DOI: 10.1007/978-3-031-23416-3_4

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().