Corporate social responsibilities and financial reporting quality: Evidence from Jordanian manufacturing firms

Abstract

The basic aim of the ongoing article is to examine the impact of social corporate responsibilities on the financial reporting quality of Jordanian manufacturing firms. For this purpose, data has been extracted from the top fifteen manufacturing companies by using corporate reports along with the Amman Stock Exchange from 2010 to 2020. The random effect model along with the generalized method of moment (GMM) has been executed for analysis purposes. The results revealed that social corporate responsibilities have positively impacted on the financial reporting quality of the Jordanian manufacturing firms. These findings have been guided to the regulators that they should provide the focus on the social corporate responsibilities that enhance the quality of financial reporting of the firm. The findings of the current study may be helpful for the manufacturing firm who wants to produce better quality of financial reporting along with the upcoming studies who want to investigate this area in their studies.