Social Reporting-Abu Dhabi Stock Market

Journal of Contemporary Issues in Business Research

Volume 2, Issue No. 3, 2013

DETERMINANTS OF CORPORATE SOCIAL RESPONSIBILITY REPORTING: EVIDENCE FROM AN EMERGING ECONOMY KAMAL NASER Kuwait Fund YOUSEF HASSAN Al Ain University of Science and Technology ABSTRACT This paper aims to measure the extent of corporate social responsibility (CSR) and its determinates by non-financial companies listed on Abu Dhabi Securities Exchange. The study employs content analysis of the annual reports to measure the extent of CSR disclosure in Abu Dhabi Companies. In addition, the study adopts multiple regression analysis to identify factors influencing the extent of corporate social responsibility disclosure. The findings reveal that the level of CSR disclosure by companies listed on Abu Dhabi Securities Exchange is low with an average of 34 %, indicating that such disclosure is still not of a primary concern to these companies. The results also suggest that the extent of CSR disclosure is influenced by corporate size, industry and profitability. The paper is limited by the subjectivity of content analysis as well as it considers CSR disclosure for only one year. This study has public policy implications for the decision makers in the UAE as well as a number of other Arab and Middle East countries. This paper adds to the limited CSR literature in Arab and Middle East countries in general and the United Arab Emirates in particular. This paper not only examines the extent and determinants of corporate social disclosure but also attempts to theorize such disclosure. Keywords: Corporate social responsibility; Content analysis; Abu Dhabi INTRODUCTION Many attempts have been made in the literature to understand, explain and justify corporate social disclosure. Owen (2005) indicated that identifying the motivation for companies' disclosure of social information is an important research tradition in the corporate social reporting literature. Many theories and approaches have been used in...