UPSI Digital Repository (UDRep)
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Abstract : Universiti Pendidikan Sultan Idris |
Iraq corporations still perform below expectation and are yet to fully comply with the
requirement of International Accounting Standards (IAS). Past research on corporate
social responsibility (CSR) practices had shown positive effects on financial
performance. Thus, this research aims to examine the relationship between the CSR
dimensions disclosure and financial performance in Iraq corporations and the effect of
firm size on CSR and financial performance. This study further analyses the moderating
effect of firm size on the relationship between CSR dimensions and financial
performance. CSR in this study refers to reporting in the environment, employee,
community, product and governance dimensions. Financial performance is represented
by Return on Assets (ROA), Net Profit Margin (NPM) and Earning per share (EPS).
Stakeholder‘s theory, legitimacy theory and agency theory are used to support the
linkage among CSR disclosures, firm size and financial performance in Iraq
corporations. Data were collected from annual reports of 27 selected companies listed
on the Iraq Stock Exchange (ISE) from 2016 to 2019. Panel data regression techniques
namely Fixed Effects Estimation and Random Effects Estimation in addition to Pooled
Ordinary Least Squares regression were carried out. The results showed that CSR
dimensions of employees and products positively influence the ROA and EPS, while
environment and governance negatively influence ROA, NPM and EPS. There is a
significant relationship in community dimension influence the ROA, NPM and EPS.
Furthermore, firm size significantly moderates the relationship between environment,
employee, community and product dimension of CSR with financial performance. This
indicates advantages for companies with a high level of firm size enable them to gain
investors' confidence. The study provides insights into the need to formulate policy on
the practice of CSR disclosure and firm size in Ira |
References |
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