Corporate Social Responsibility Disclosure Index Research Articles

Does Institutional Quality Complement The Relationship Between Ownership Structure And Corporate Social Responsibility?

The key purpose of the Study is to examine if institutional quality complements the relationship between Ownership Structure and Corporate Social Responsibility disclosure and performance in the light of legitimacy and agency theory. To the best of my knowledge, it is the first study in literature of finance. The sample comprises of 112 top-performing listed firms (based on market capitalization) at Pakistan Stock Exchange from 2010 - 2019. Institutional quality comprised of world governance indicators which is developed via principal component analysis, an instrumental variable approach and content analysis are used for CSR Disclosure Index to demonstrate the relationship between ownership structure and CSR. The resources complementary phenomenon is adopted to examine the institutional quality’s role. Our results show significantly positive impact of Institutional and Foreign Ownerships on CSR while negative significant influence of CEO Duality and Family Ownership on CSR, suggesting that well governed firms will be more socially responsible. In addition, the findings suggest the institutional quality’s positive moderating role on the relationship between ownership structure and CSR, signifying the institutional quality’s complementary role for the weak corporate environment in Pakistan. Our findings are robust to a series of tests by using Generalized Method of Moment (GMM).

Digital transformation and governance heterogeneity as determinants of CSR disclosure: insights from Chinese A-share companies

Purpose In this fast-changing world, digitization has become crucial to organizations, allowing decision-makers to alter corporate processes. Companies with a higher corporate social responsibility (CSR) level not only help encourage employees to focus on their goals, but they also show that they take their social responsibility seriously, which is increasingly important in today’s digital economy. So, this study aims to examine the relationship between digital transformation and CSR disclosure of Chinese A-share companies. Furthermore, this research investigates the moderating impact of governance heterogeneity, including CEO power and corporate internal control (INT) mechanisms. Design/methodology/approach This study used fixed effect estimation with robust standard errors to examine the relationship between digital transformation and CSR disclosure and the moderating effect of governance heterogeneity among Chinese A-share companies from 2010 to 2020. The whole sample consists of 17,266 firms, including 5,038 state-owned enterprise (SOE) company records and 12,228 non-SOE records. The whole sample data is collected from the China Stock Market and Accounting Research, the Chinese Research Data Services and the WIND databases. Findings The regression results lead us to three conclusions after classifying the sample into non-SOE and SOE groups. First, Chinese A-share businesses with greater levels of digitalization have lower CSR disclosures. Both SOE and non-SOE are consistent with these findings. Second, increasing CEO authority creates a more centralized company decision-making structure (Breuer et al., 2022; Freire, 2019), which improves the negative association between digitalization and CSR disclosure. These conclusions, however, also apply to non-SOE. Finally, INT reinforces the association between corporate digitization and CSR disclosure, which is especially obvious in SOEs. These findings are robust to alternative HEXUN CSR disclosure index. Heterogeneity analysis shows that the negative relationship between corporate digitalization and CSR disclosures is more pronounced in bigger, highly levered and highly financialized firms. Originality/value Digitalization and CSR disclosure are well studied, but few have examined their interactions from a governance heterogeneity perspective in China. Practitioners and policymakers may use these insights to help business owners implement suitable digital policies for firm development from diverse business perspectives.

Corporate social responsibility in times of social distancing: Evidence from China

AbstractThis study investigates whether and how the intensity of social distancing from the Coronavirus disease 2019 (COVID‐19) pandemic influences the corporate social responsibility (CSR) disclosure index. An empirical examination is carried out based on data from the Shanghai Stock Exchange from 2020 to 2022. CSR disclosure index is measured by the percentage of CSR‐related press releases from the total press releases published on a certain day. The intensity of the COVID‐19 pandemic is measured by the daily confirmed cases among the population in China. This research uses the two‐stage least squares regression model to alleviate the endogeneity issues. Findings reveal a reverse correlation between the intensity of the COVID‐19 pandemic and the CSR disclosure. The results are consistent and robust to endogeneity tests and sensitivity analyses. Findings support the stakeholder–agency theory and indicate that Chinese managers tend to satisfy the shareholders' interests rather than those of other broad stakeholders. Moreover, Chinese managers tend to choose short‐term survival rather than long‐term development in times of social distancing.

THE INFLUENCE OF PROFITABILITY AND LEVERAGE ON CORPORATE SOCIAL RESPONSIBILITY

This research aims to empirically test and analyze the influence of profitability and leverage on corporate social responsibility. This research includes quantitative research. The research sample was 97 mining companies listed on the Indonesia Stock Exchange in the period 2018 to 2022. The sampling technique used purposive sampling. Profitability is measured using Return on Assets (ROA), leverage is measured using the Debt to Equity Ratio (DER), and corporate social responsibility is measured using the corporate social responsibility disclosure index (CSRDI). The data used is company annual financial report data. The data analysis technique was carried out using multiple linear regression analysis and data processing via SPSS. The research results show that profitability has a significant positive effect on the company's corporate social responsibility. Leverage has also been proven to influence a company's corporate social responsibility. Companies that are able to generate profits (profits) and manage debt well will have an impact on the corporate social responsibility of mining companies listed on the Indonesia Stock Exchange.

Role of Corporate Social Responsibility (CSR) in the relationship between Green Accounting and Firm Value: Evidence from Indian Companies

This empirical research looks into how different factors including Green accounting, capital structure, and CSR influence Firm value. The research is quantitative in nature, drawing on data from 31 consumer durables companies listed on BSE. The analysis uses multiple regression technique. Additionally, the study uses a CSR disclosure index based on the Key Performance Indicators of the Global Reporting Initiative. This study found that Green Accounting and Capital Structure have effect on Firm Value, and that CSR can significantly moderate this relationship. The study's results shed new light on the complex interplay Green Accounting, financial flexibility, and firm value. It provides empirical data on the links between green accounting, capital structure, CSR, and firm. These results are useful for policymakers and managers who want to know how corporate social responsibility and environmental policies affect an organization's bottom line and its overall efficiency.

PENGARUH GOOD CORPORATE GOVERNANCE DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP TAX AVOIDANCE


 This study aims to determine the effect of good corporate governance and corporate social responsibility on tax avoidance. good corporate governance is proxied by the independent commissioner and the audit committee, while corporate social responsibility is proxied by the corporate social responsibility disclosure index (CSRDI) and tax avoidance is proxied by the current ETR. corporate social responsibility disclosure index and measured based on the global reporting initiative 4.0. The population in this study are food and beverage companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022, namely 31 companies. The research sample consisted of 17 companies or 68 observational data selected by purposive sampling method. The data used is secondary data obtained from the website of the Indonesia Stock Exchange (IDX) and the data analysis used is multiple linear regression analysis. The results of the study prove that the independent commissioner and corporate social responsibility have a significant effect on tax avoidance, while the audit committee has no effect on tax avoidance. independent commissioners have an effect on tax avoidance because commissioners play an active role in supervising the actions of company management, while corporate social responsibility can be used as a deduction from the company's pre-tax profit so that it affects tax avoidance.

The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria

Corporate Social Responsibility (CSR) initiatives are charitable events and methods for improving a company's image, satisfying key stakeholders, and increasing financial performance. The issue of CSR initiatives on capital growth and sustainability remains imperative for this study. Therefore, this study is set out to examine the effect of corporate social responsibility disclosure index on firm performance of selected sectoral industries in Nigeria and to investigate the effect of corporate social responsibility on market value of selected sectoral industries in Nigeria. This study adopts multi-stage sampling approaches. A quantitative method was used in which a deductive technique was adopted because the research was based on existing theories and findings from previous investigations. Descriptive statistics, correlation regression panel and cross sectional analysis were adopted for the purpose of this study. The result showed that CSR as a variable has the highest mean = 69.7608) with a standard deviation = 11.7713 indicates that CSR is the most sensitivity variable, while leverage (LEV) has the second highest mean = 55.0760 with a standard deviation = 182.3009 and SIZE has mean = 16.9473 with a standard deviation = 1.0996 indicates that the value of corporate SIZE is also a huge factor to the study. However, the correlations statistics shows that return on asset (ROE) has a positive correction = 0.4468 with return on equity (ROA) at 5 percent level of significant. TobinQ has a positive relationship with ROA = 0.5321 and ROE = 0.0842 at 5 percent level of significant respectively. CSR has a negative relationship with ROA = −0.0948*, ROE = −0.0760 and Tobin Q = −0.0734 at 5 percent level of significant respectively. SIZE has a positive significant relationship with ROA = 0.0589, ROE = 0.0826 and CSR = 0.2449. The findings revealed that firms in Nigeria are yet to significantly use CSR to promote their performances like what is done by firms in developed economies. Therefore, as part of the recommendation from this study, Nigerian firms are advised to pay more attention to being CSR responsible and find ways by which this can translate to improved profit and enhancement of their overall performances.

The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria

Corporate Social Responsibility (CSR) initiatives are charitable events and methods for improving a company's image, satisfying key stakeholders, and increasing financial performance. The issue of CSR initiatives on capital growth and sustainability remains imperative for this study. Therefore, this study is set out to examine the effect of corporate social responsibility disclosure index on firm performance of selected sectoral industries in Nigeria and to investigate the effect of corporate social responsibility on market value of selected sectoral industries in Nigeria. This study adopts multi-stage sampling approaches. A quantitative method was used in which a deductive technique was adopted because the research was based on existing theories and findings from previous investigations. Descriptive statistics, correlation regression panel and cross sectional analysis were adopted for the purpose of this study. The result showed that CSR as a variable has the highest mean = 69.7608) with a standard deviation = 11.7713 indicates that CSR is the most sensitivity variable, while leverage (LEV) has the second highest mean = 55.0760 with a standard deviation = 182.3009 and SIZE has mean = 16.9473 with a standard deviation = 1.0996 indicates that the value of corporate SIZE is also a huge factor to the study. However, the correlations statistics shows that return on asset (ROE) has a positive correction = 0.4468 with return on equity (ROA) at 5 percent level of significant. TobinQ has a positive relationship with ROA = 0.5321 and ROE = 0.0842 at 5 percent level of significant respectively. CSR has a negative relationship with ROA = −0.0948*, ROE = −0.0760 and Tobin Q = −0.0734 at 5 percent level of significant respectively. SIZE has a positive significant relationship with ROA = 0.0589, ROE = 0.0826 and CSR = 0.2449. The findings revealed that firms in Nigeria are yet to significantly use CSR to promote their performances like what is done by firms in developed economies. Therefore, as part of the recommendation from this study, Nigerian firms are advised to pay more attention to being CSR responsible and find ways by which this can translate to improved profit and enhancement of their overall performances.

ARE FINANCIAL PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY DETERMINANTS TO FIRM VALUE?

This study aims to empirically prove the influence of capital structure, profitability, and corporate social responsibility on firm value. There are 3 independent variables used in this study, namely capital structure as measured by the Debt to Equity Ratio (DER), profitability as measured by Return on Assets (ROA), and corporate social responsibility as measured by the Corporate Social Responsibility Disclosure Index ( CSRDI) with content analysis technique. The population used in this study uses manufacturing companies in the food and beverage sub-sector listed on the Indonesia Stock Exchange in the period 2018 to 2020. Data collection was carried out using a purposive sampling technique with a total sample of 20 companies. The analytical method used is multiple linear regression analysis with SPSS version 26. 0 applications and a significant value of 5%. The results of this study are the capital structure variable has a significant positive effect on firm value, the profitability variable has a significant positive effect on firm value, and the corporate social responsibility variable has no effect on firm value.

Determinants of corporate social responsibility: Evidence of manufacturing companies in Indonesia

This study examined the effect of earnings management and the board of directors on corporate social responsibility disclosure. In this study, earnings management is measured using the modified Jones model, while corporate social responsibility disclosure is calculated using the corporate social responsibility disclosure index (CSRI). This study uses the CSRI index based on the Global Reporting Initiative (GRI) reporting standards disclosed by companies in their annual reports. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in the 2017-2021 period that met the sample criteria. This research was conducted with a regression analysis model. The results of this study state that earnings management positively influences corporate social responsibility disclosure, and corporate governance proxied by the board of directors negatively affects corporate social responsibility disclosure

Kepemilikan Saham Publik dan Corporate Social Responsibility terhadap Kinerja Keuangan

This study aims to analyze the factors that influence the financial performance of basic and chemical industrial companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. This research method is descriptive quantitative. The sample selection technique uses a purposive sampling technique so that a sample of 20 companies is obtained. The data analysis method uses path analysis or path analysis using the SMART-PLS application. The results of the study show that the path coefficient value is indicated by the influence of Financial Performance on variable X, namely Public Share Ownership which is reflected in the ROE of 3.484. In further tests, the results show that the second biggest influence is the influence of Financial Performance on variable Z, namely Corporate Social Responsibility as reflected in the Corporate Social Responsibility Disclosure Index (CSRDI) of 2.455. In further tests, the results show that Corporate Social Responsibility can mediate Financial Performance and Public Share Ownership of 0.912. In conclusion, Public Share Ownership (KSP) has an effect on financial performance and Financial Performance has an effect on Corporate Social Responsibility (CSR). However, Corporate Social Responsibility (CSR) cannot provide a mediating effect on Public Share Ownership (KSP) and financial performance.
 Keywords: Corporate Social Responsibility (CSR), Public Share Ownership (KSP), Financial Performance

Pengaruh Tingkat Profitabilitas Terhadap CSR (Studi Empiris Perusahaan Manufaktur Sektor Semen, Keramik, Porselen Dan Kaca Yang Terdaftar Di BEI Tahun 2018-2020)

This study was conducted with the aim of knowing whether there is an influence on the profitability of manufacturing companies in the cement, ceramic, porcelain, and glass sectors listed on the Indonesia Stock Exchange in 2018-2020 on Corporate Social Responsibility. The company's profitability can be affected by circumstances such as the Covid-19 pandemic because it disrupts the company's operations so that many companies experience a decline in profits during the pandemic. Profitability measurement is carried out using financial ratios, namely Net Profit Margin (NPM), while Corporate Social Responsibility is measured using the Corporate Social Responsibility Disclosure Index (CSRDI). This study uses 35 samples of cement, ceramic, porcelain, and glass manufacturing companies listed on the IDX from 2018 to 2020 where the type of data used is secondary data obtained from the company's financial statements. The test for this hypothesis is multiple linear regression using SPSS version 22. The results show that profitability has a positive effect on Corporate Social Responsibility. In addition to profitability, there is also the size of the company which has a positive influence on Corporate Social Responsibility.

Corporate social responsibility disclosures and profitability of Islamic banks: an empirical study

PurposeThis study aims to investigate the relationship between corporate social responsibility (CSR) disclosure and financial performance (FP) of Islamic banking sector from a developing country perspective. It also explores the present status of CSR activities performing by the listed Islamic banks (IBs) of Bangladesh.Design/methodology/approachThe secondary data from seven IBs’ annual reports for the years 2009–2018 are taken to obtain substantial measures of CSR activities. A corporate social responsibility disclosure index is constructed based on disclosure status on nine dimensions and 75 items as per the Accounting and Auditing Organization for Islamic Financial Institutions standards. To find the association between CSR disclosures and profitability, panel regression analysis has been performed.FindingsThe result indicates that CSR disclosures have a significant and negative relation with FP (return on assets) of IBs. It also suggests the expansion of CSR practices and the communicative CSR reporting of IBs, as an ethical identity, toward the stakeholders and society.Research limitations/implicationsFirst, the samples used in this study are limited to IBs as ethical identities in Bangladesh. Second, the length of a time frame as the practice of CSR activities and its reporting is still ineffective following the enforcement of the central bank directive in 2008. Another limitation is that the study used a subjective measure, content analysis, of CSR activities that was self-reported disclosures, which may creep some biasness.Practical implicationsThe practical involvement of this research includes the assistance for policy development regarding better understanding of expansion of CSR practices and trustworthiness of CSR reporting by the Islamic banking segments in developing country context. Future researchers can get a glimpse of what reputational impact CSR initiatives really have on consumers and investors, considering CSR activities as an indicator of greater transparency and honesty in operations and financial reporting.Originality/valueThis study makes an important contribution to the academic literature on CSR communication from developing country context where CSR activities are supported under Islamic banking system. In addition, its examination of the legitimacy of CSR disclosures elaborates the social obligations of corporate entities to their stakeholders and society.

Islamic Corporate Social Responsibility Disclosure Index: The Application of Maqasid Shari’ah and Maslahah

The paper attempts to develop the Islamic Corporate Social Responsibility (i-CSR) Disclosure index for Shari’ah Compliant Companies (ShCC) in Malaysia. The i-CSR disclosure index was constructed based on the four themes of CSR framework that was established by Bursa Malaysia in 2006, namely, marketplace, workplace, environment and community. In addition to existing CSR framework, this study incorporated the five values of Maqasid Shari’ah namely protection of faith (al-din), protection of human life (al-nafs), protection of intellect (al-aql), protection of posterity (al-nasl) and protection of wealth (al-mal).and Maslahah namely essential (daruriyyat), complementary (hajiyyat) and embellishment (tahsiniyyat). The items of the four themes were developed based on the previous study, annual report of Middle East countries, annual report of the Prime Minister’s CSR Award and National Annual Corporate Report Awards (NACRA). All of the mandatory items required by the approved Accounting Standards, Companies Act, 1965 and Bursa Malaysia Listing Requirement were eliminated in the i-CSR index. A checklist of ninety-three (93) items was used in this study after taking into consideration the ten (10) expert opinions, which were from the regulatory board Shari’ah officer from the Islamic Banking and Finance Institute Malaysia (IBFIM), Shari’ah officer from Jabatan Mufti and Majlis Agama Islam, and academicians from accounting and Islamic studies.

Corporate Social Responsibility and Firm Performance among Malaysian Firms

With the rise in corporate social responsibility (CSR) initiatives and greater awareness of sustainable development, CSR is rapidly evolving and firms’ involvement is increasing. However, the enforcement of mandatory disclosure does not necessarily mean firms will respond and go beyond these legislations. Thus, the underlying premise of positive financial outcomes could encourage firms to act beyond legislative compliance. This study first examined the current nature and extent of a firm’s CSR disclosure (CSRD), as measured by CSR dimensions workplace, marketplace, community, and environment. CSRD was measured through content analysis, through annual reports of 97 manufacturing firms in Malaysia from 2017 to 2019. A CSR disclosure index was adopted for this study. This study also determined the impact of CSRD on corporate financial performance (CFP) and identified which CSRD dimension had the greatest impact on CFP. Firm size, measured by the level of assets, sales, and market capitalisation, as well as earnings per share were the control variables for this study. Data were analysed using Pearson’s correlation and multiple regression analysis. It was found that CSRD levels in manufacturing firms in Malaysia were still low and there was a mixed relationship between CSRD and CFP. The findings suggest that the relationship between CSR and CFP may be curvilinear. It was also found that community, workplace, and marketplace related responsibility activities affected ROA the most, whereas the marketplace affected Tobin’s Q the most.

The Level of Corporate Social Responsibility Disclosure of the Banks Listed in DSE of Bangladesh: A Comparative Study between Pre-Covid Period and Pandemic Period

The aim of the study is to measure the extent of the Corporate Social Responsibility Disclosure (CSRD) revealing practices of the listed banks in Bangladesh and investigate the potential impacts of pandemic period and bank specific attributes on CSR disclosures on the basis of the contemporary data from 2015-2020. The study is directed with content analysis of 30 listed banks in Bangladesh during the period of 2015-2020 generating 180 sample year observations to break down the components that influence the CSR reporting of the listed banks. The study finds that CSR disclosure index decreases at 71% in 2020 and it is clearly stated that pandemic poses a significant impact on CSR reporting. This study also indicates firm age, leverage, independent director, foreign ownership have significant effects on CSR disclosure index. On the other hand, banks' profitability, bank size and institutional ownership have insignificant relationship with corporate social responsibility disclosure index (CSRD). This study will play a significant role to find out the determinants of CSR disclosures and help the authority to give more attention on CSR reporting after post pandemic phase to tackle down the pandemic challenges and crises.

Corporate Social Responsibility Disclosure by Islamic Banks in GCC Region

This paper aimed to assess the level of CSR disclosure of Islamic banks in the GCC region against a backdrop of Islamic finance principles and Islamic moral economy, using content analysis to create the CSR disclosure index. As well, it employs the qualitative research approach, which is followed by measurement and the interpretation of the qualitative conclusions. This paper used the content analysis approach to examine data from annual reports a total of twenty-eight Islamic banks, analysing 334 annual reports from 2006 to 2019. Furthermore, Bahrain Islamic banks took first place, while Saudi Islamic banks earned the lowest rate in the region. However, when compared to previous studies, the level of CSR disclosure shows a slight improvement. Despite this, the data reveals that CSR disclosure remains low, at 55%. Commitment to debtors placed best in a cross-sectional analysis of CSR disclosure dimensions, with an overall value of 0.69. For Zakat, charity, and beneficent loans, the minimum score is (0.36). Several reports from the tested Islamic banks were found to be lacking CSR disclosure information, according to these findings. This research adds to the body of knowledge and will be valuable to policymakers, government entities, and regulators who may want to encourage Islamic banks to issue and determine a basic index for CSR disclosure policies in their annual reports and websites. In addition, future research may examine survey methodologies that include more in-depth interviews with administration and important stakeholder, which could improve the CSR disclosure degree of understanding in Islamic banking.

Determinants of Corporate Social Responsibility Disclosure Index in Islamic Banks of Pakistan: Role of Corporate Governance and Company Level Determinants

Determinants of Corporate Social Responsibility Disclosure Index in Islamic Banks of Pakistan: Role of Corporate Governance and Company Level Determinants

Corporate Social Responsibility and Financial Performance in the Manufacturing Sector in Pakistan: Moderating Role Gender Diversity of Board

Purpose: The study examines the impact of corporate social responsibility on financial performance with the moderating role of gender diversity in the context of the manufacturing sector in Pakistan.
 Design/Methodology/Approach: The study is quantitative by using secondary data from 33 manufacturing firms listed on the Pakistan stock exchange for the time of 2015-to 2020. CSR disclosure index is calculated through the content analysis technique. Traditional and market-based proxies are used to measure financial performance. The study used the Panel data analysis technique by employing the GMM model. 
 Findings: Results shows that corporate social responsibility positively influences the performance of firms, which implies that engagement in CSR will improve a firm’s performance. Moreover, results reveal that gender diversity strengthens the relationship between corporate social responsibility and financial performance, which suggests that having female board members will benefit the firm to engage in CSR.
 Implications/Originality/Value: The study is valuable for corporate executives for captivating the initiatives concerning CSR and gender diversity on boards.

The impact of CSR on the financing cost of Jordanian firms

PurposeThe purpose of this paper is to examine the impact of corporate social responsibility (CSR) disclosure on the firms’ weighted average cost of capital (WACC) of Jordanian industrial firms listed in the Amman Stock Exchange (ASE) over the 2009–2019 period. In particular, this paper examines whether stockholders and creditors value CSR information disclosure positively when they decide to provide financing to the firm.Design/methodology/approachTo investigate the relationship between the firm's disclosure of CSR and its WACC within Jordanian industrial firms, this study used the generalized method of moments. This study first describes the variables and then the model specification. The dependent variable is the WACC, calculated as the weighted average cost of debt and the cost of equity. For the main independent variable, this study used the CSR disclosure index developed by Abu Qa'adan and Suwaidan (2019), which includes 42 items of information classified into four categories: environmental information, human resources information, community involvement information and product/services to customer information. The sample includes 42 industrial firms listed in the ASE over the period 2009–2019.FindingsThis study finds find that there is no impact of total CSR disclosure on the WACC. However, firms that do not disclose enough information and engage in socially responsible activities related to the environment and the human resources are considered high risk to the market participants (i.e. creditors and equity holders) and consequently are penalized by being charged high financing costs. Furthermore, profitable firms that engage in CSR activities are seen to be highly risky.Research limitations/implicationsAs the period chosen for the study is considered a period of an economic slowdown in Jordan, it is highly likely that the impact of the economic slowdown increased the required return on investment by equity holders. The results of the study are consistent with the idea that managers regard CSR as philanthropy rather than as a necessary activity that leads to the sustainability of their businesses. On the other hand, it could be that investors do not give any attention to the CSR information provided by the firm, and hence, their required return is determined by other factors.Originality/valueThis research contributes to the literature on CSR in the following: first, contrary to previous research that examines the impact of CSR on a firm's value or its cost of equity capital, this study will examine the effect of CSR disclosures on the company’s WACC. Second, this research examines the CSR disclosure in a small market where information asymmetry is high, thus the authors suggest that their CSR disclosure is one channel through which firms can reduce this information asymmetry and improve their performance.