E iqa , Ib ahim O.A.; Tahi , Muhammad; Zulka li, Abdul Hadi
A icle
The impac o co po a e social esponsibili y disclosu e on co po a e
epu a ion: he mode a ing ole o na ional cul u e in inancial
indus ies o MENA egion
Cogen Business & Managemen
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The impac o co po a e social esponsibili y
disclosu e on co po a e epu a ion: he
mode a ing ole o na ional cul u e in financial
indus ies o MENA egion
Ib ahim O.A. E iqa , Muhammad Tahi & Abdul Hadi Zulkafli
To ci e his a icle: Ib ahim O.A. E iqa , Muhammad Tahi & Abdul Hadi Zulkafli (2024)
The impac o co po a e social esponsibili y disclosu e on co po a e epu a ion: he
mode a ing ole o na ional cul u e in financial indus ies o MENA egion, Cogen Business &
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eseA ch A icle
Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2391120
The impac o co po a e social esponsibili y disclosu e on
co po a e epu a ion: he mode a ing ole o na ional cul u e in
inancial indus ies o MENA egion
ib ahim o.A. e iqa a,b , Muhammad ahi c and Abdul hadi Zulka lid
aal-Quds uni e si y, Je usalem, Pales ine; bschool o accoun ing and Finance, asia Paci ic uni e si y o echnology and
inno a ion, Kuala Lumpu , Malaysia; cDepa men o Managemen sciences, uni e si y o u ba , Balochis an, Pakis an;
dschool o Managemen , uni e si i sains Malaysia, geo ge own, Malaysia
ABSTRACT
his s udy explo es he mode a ing ole o na ional cul u e on he ela ionship be ween
co po a e social esponsibili y Disclosu e (cs D) and co po a e epu a ion wi hin
inancial indus ies in he MenA egion. u ilizing a da ase o 96 inancial i ms lis ed in
Jo dan, pales ine, Qa a , and Kuwai om 2016 o 2020, he s udy employs he
gene alized Me hod o Momen s (gMM) o es ima e dynamic co po a e epu a ion
models. he indings indica e a posi i e impac o cs D on co po a e epu a ion.
no ably, indi idualism as a cul u al dimension enhances his posi i e ela ionship,
whe eas gene alized us weakens i . his esea ch con ibu es o he li e a u e by
de eloping a quan i a i e co po a e epu a ion index using p incipal componen
analysis (pcA), add essing gaps in cs D esea ch in de eloping egions, and highligh ing
he impo ance o na ional cul u e in in luencing s akeholde pe cep ions o cs
ac i i ies. he esul s unde sco e he need o MenA inancial i ms o engage in
s uc u ed cs ini ia i es and anspa en disclosu es aligned wi h cul u al alues o
enhance co po a e epu a ion. Fu u e esea ch should conside quali a i e aspec s and
expand he scope o o he indus ies and egions.
1. In oduc ion
esea che s a gue ha a company’s co po a e epu a ion is i s mos aluable in angible asse since i
helps i gain an impo an compe i i e ad an age (Ki ching, 2021; Mi anda & Miguel, 2024; obe s &
Dowling, 2002). nume ous bene i s may esul om ha ing a a o able co po a e epu a ion, including
lu ing in in es o s, clien s, and s a , as well as s eng hening accep abili y and public pe cep ions o he
company (e iqa e al., 2023; obe s & Dowling, 2002). he e o e, a g owing numbe o academics ha e
gi en co po a e epu a ion conside able a en ion.
co po a e epu a ion (c ) e e s o he pe cep ions held by di e en s akeholde s abou he abili y o
an o ganiza ion o mee hei needs (lange e al., 2011). hus, esea ch ag ees ha co po a e epu a ion
should be e alua ed in ligh o se e al dimensions ep esen ing he pe cep ions o a ious s akeholde s
(Je ey e al., 2019). Al hough he e is consensus on he ac o s ha may e lec a company’s epu a ion,
he e is no common app oach ye o measu e he en i e esul o co po a e epu a ion (Ba uah & panda,
2020). schola s, in his pa icula , de elop se e al co po a e epu a ion anking models, such as epu a ion
Quo ien and Fo une’s Wo ld’s Mos Admi ed companies (WMAcs), which a e commonly exclusi e o a
g oup o de eloped-na ion businesses (Khan & Digou , 2018). Fu he mo e, despi e ha epu a ion mod-
els handle he mul idimensionali y o co po a e epu a ion, hei applica ion o en aces c i icism due o
biased e alua ions, as hese epu a ion a ing models only ely on ceo o analys su eys, which may
no accu a ely ep esen all s akeholde g oups (ghuslan e al., 2021).
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup
CONTACT ib ahim o. a. e iqa ib ahime iqa [email protected] al-Quds uni e si y, Je usalem, Pales ine.
h ps://doi.o g/10.1080/23311975.2024.2391120
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
ecei ed 11 Ma ch 2024
e ised 1 Augus 2024
Accep ed 4 Augus 2024
KEYWORDS
MenA; co po a e social
esponsibili y disclosu e;
co po a e epu a ion;
na ional cul u e; inancial
indus ies
SUBJECTS
Finance; Business,
Managemen and
Accoun ing;
en i onmen al economics
JEL CLASSIFICATION
CODES
n25; M14; l14; g41
2 i. o. A. e iQA e Al.
howe e , in he case o de eloping coun ies, especially in he MenA egion, whe e da abases anking
co po a e epu a ion a e lacking, esea ch on he phenomenon o co po a e epu a ion emains ela i ely
new and has no been ex ensi ely explo ed (li e al., 2020), cu en esea ch in he MenA con ex o en
e alua es co po a e epu a ion using quali a i e me hods, such as su eys (Al sakka e al., 2022; Bayoud
e al., 2012). his has spa ked he in e es o he cu en s udy in quan i a i ely e alua ing co po a e
epu a ion in he MenA con ex .
in addi ion o he impo ance o e alua ing co po a e epu a ion, in es iga ing he de e minan s o
an eceden s o co po a e epu a ion is c ucial o main aining and managing epu a ion e ec i ely
(pé ez‐co nejo e al., 2020). p e ious esea ch has linked co po a e social esponsibili y (cs ) o co po a e
epu a ion (lin, 2024; Mi anda & Miguel, 2024; o henhoe e , 2019). cs is de ined as he in eg a ion o
social and en i onmen al conside a ions in o business ac i i ies (eu, 2002). Acco ding o Buka i e al.
(2024) o lhu i e al. (2024), cs in ol es a company’s dedica ion o ensu ing he wel a e o s akehold-
e s h ough olun a y business p ac ices. ca oll (2016) sugges s ha cs is he s akeholde s’ expec a-
ions abou he i m’s beha io owa ds socie y based on ou aspec s: economic, legal, e hical, and
disc e iona y.
ecen ly, he phenomenon o he adop ion o cs p ac ices has become widely acknowledged as a
alue-c ea ing oppo uni y and no a bu den on a company (Ala awi e al., 2023). ne e heless, he
adop ion o cs p ac ices in de eloping coun ies is cha ac e ized as less ex ensi e, less embedded in
co po a e s a egies, and less s uc u ed han in mos de eloped coun ies (Jamali & ne ille, 2011).
howe e , esea che s sugges ha o enhance a company’s epu a ion h ough cs , companies i s
should adop planned o s uc u ed cs ini ia i es ha align wi h s akeholde p io i ies and needs
(Bögel, 2019; Fa ma e al., 2015). Fo example, job c ea ion, po e y educ ion, and imp o ing he s an-
da d o li ing a e he main challenges acing he MenA egion, and he e o e, should be he op p io i-
ies o cs ini ia i es in he egion (shehadi e al., 2013). second, companies should p o ide high-quali y
disclosu e o cs ac i i ies. co po a e social esponsibili y disclosu e (cs D) imp o es company’s epu a-
ion by enhancing cs isibili y beyond in e nal s akeholde s (islam e al., 2021; o henhoe e , 2019).
Fu he mo e, p e ious esea ch demons a ed ha na ional cul u al a ibu es can in luence he asso-
cia ion be ween cs D and c (pé ez-co nejo e al., 2021). his is because na ional cul u e plays a pi o al
ole in in luencing decisions ela ed o he adop ion and disclosu e o cs p ac ices (gallén & pe ai a,
2018). Fo ins ance, in he MenA con ex , esea che s ha e claimed ha cha i able ac i i ies domina e
he landscape o cs p ac ices (Jamali & ne ille, 2011). his is because hey a e cul u ally embedded due
o islamic ins uc ions, such as he p inciple o Zaka (Whi e & Alkanda i, 2019). on he o he hand,
na ional cul u al ac o s also impac how s akeholde s pe cei e and in e p e co po a e ac i i ies, such as
cs D, which ul ima ely a ec s how s akeholde s iew he o ganiza ion (Deephouse e al., 2016).
he li e a u e on na ional cul u e de e mines he cul u al alues o a pa icula con ex in ligh o
se e al cul u al dimensions (ho s ede, 2001), among which he cu en s udy ocuses on indi idualism
and gene alized us as na ional cul u e dimensions. indi idualism-collec i ism pe ains o he ex en o
which a socie al o ien a ion p io i izes ei he g oup o indi idual in e es s (go odnichenko & oland,
2012), while gene alized us is he le el o us ha membe s o a socie y place in o he s, especially
hose who a e no in hei immedia e social ci cle (po a e al., 1996). howe e , p e ious esea ch indi-
ca es ha hese cul u al dimensions a e ele an ac o s o cs D and co po a e epu a ion. Fo example,
Maignan (2001) showed ha s akeholde s om di e en coun ies a ibu e a ying le els o impo ance
o cs ac i i ies, based on hei deg ee o indi idualism o collec i ism. in addi ion, esea ch has s a ed
ha he deg ee o gene alized us in a pa icula socie y could p o ide insigh s in o us in a i m’s
ac i i ies (Mishle & ose, 2001), such as cs D, and i s impac on co po a e epu a ion. his discussion
aises he s udy ques ion o wha is he impac o na ional cul u e on he ela ionship be ween cs D
and c in he con ex o he MenA egion.
he e o e, his s udy aims o in es iga e he impac o na ional cul u e, speci ically indi idualism and
gene alized us , on he ela ionship be ween cs D and co po a e epu a ion (c ) wi hin MenA na ions.
u ilizing da a om 96 inancial i ms ac oss ou MenA na ions, pales ine, Jo dan, Qa a , and Kuwai , he
s udy e eals se e al key indings. Fi s ly, i con i ms he posi i e e ec o cs D on c . Addi ionally; he
s udy e ealed ha he in e ac ion be ween indi idualism and cs D has a a o able e ec on c , while
he in e ac ion be ween cs D and gene alized us has a de imen al e ec on i .
cogen Business & MAnAgeMen 3
his s udy makes se e al con ibu ions o he exis ing li e a u e. Fi s ly, p io esea ch on co po a e
epu a ion has ypically employed h ee common app oaches: using a single p oxy, such as he i m’s
ma ke alue (Kau & singh, 2018), conduc ing su eys (Al sakka e al., 2022; Ja ed e al., 2020), o ely-
ing on epu a ion anking models (Dell’A i e al., 2017; Ki ching, 2021). in con as , his s udy de elops
a quan i a i e index o co po a e epu a ion by in eg a ing a ious co po a e epu a ion indica o s
h ough p incipal componen analysis (pcA). his me hodology add esses wo key challenges iden i ied
in p e ious esea ch: (i) p o iding a b oade pe spec i e on he s a us o co po a e epu a ion compa ed
o he single-p oxy app oach, and (ii) mi iga ing po en ial biases ha may in luence he e alua ion o
co po a e epu a ion when elying on su eys o epu a ion da abases.
second, while s udies on he ela ionship be ween cs D and co po a e epu a ion a e becoming
ex ensi e, he e is s ill a limi ed body o li e a u e in he case o de eloping coun ies compa ed o
de eloped Wes e n coun ies. hus, he cu en s udy o e s new insigh s in o he ela ionship be ween
cs D and co po a e epu a ion in a unique con ex . Addi ionally, in he MenA con ex , i is pa icula ly
a gued ha cs and cs D a e s ill no clea ly unde s ood, wi h uns uc u ed cs ac i i ies domina ing
he landscape (Aqabna e al., 2023; Jamali & ne ille, 2011). he e o e, he p esen s udy conside s a
quan i a i e measu e o cs D ha akes in o accoun i s ou main aspec s, including en i onmen ,
communi y, human esou ces, p oduc s, se ices, and cus ome s. his me ic can p o ide a gene al
assessmen o i ms’ commi men o disclosing s a egic o planned cs ac i i ies, which adds o he
body o knowledge on cs D in he egion.
Fu he mo e, his s udy expands he scope o he ela ionship be ween cs D and co po a e epu a-
ion by in es iga ing he in luence o na ional cul u e on his ela ionship. his in es iga ion can p o ide
a wide unde s anding o he na u e o he cs D and co po a e epu a ion ela ionship. Finally, he cu -
en s udy is among he ew ha conside he dynamic na u e o co po a e epu a ion, supposing ha
he p e ious s a us o co po a e epu a ion in luences i s p esen epu a ion.
he emainde o his esea ch is s uc u ed as ollows: sec ion wo p esen s he backg ound o he
s udy. heo e ical li e a u e is discussed in he hi d sec ion. he ou h sec ion explo es empi ical li e a-
u e and he de elopmen o hypo heses. esea ch design, including da a collec ion, sampling, s udy
a iables, analy ical app oach, and empi ical models, is de ailed in he i h sec ion. he esea ch indings
and discussion a e he main ocus o he six h segmen . Finally, he p ima y indings, implica ions, lim-
i a ions, and sugges ions o u u e s udies a e p esen ed in he concluding sec ion.
2. Backg ound
in ecen yea s, he MenA egion has wi nessed apid ma ke g ow h, pa icula ly in he inancial sec o
(Amico, 2014). p e ious li e a u e p o ides e idence o he essen ial ole o a well-de eloped inancial
sec o in p omo ing economic g ow h, po e y alle ia ion, and job c ea ion (Awdeh, 2018), as he inan-
cial sys em mobilizes sa ings o p oduc i e in es men s ha inc ease capi al accumula ion and income
g ow h (ehigiamusoe & samsu ijan, 2021). pa icula ly in MenA coun ies, inancial companies domina e
he s ock exchange landscape and con ibu e signi ican ly o he gDp o hese coun ies (Amico, 2014;
A ezki & senbe , 2020). he e o e, his s udy is in e es ed in in es iga ing he epu a ion o inancial
companies in he MenA egion. A epu able o ganiza ion can enjoy highe inancial and non- inancial
pe o mance, as i c ea es a compe i i e ad an age o he o ganiza ion, a ac ing in es o s, cus ome s,
supplie s, and employees (Ki ching, 2021; Mi anda & Miguel, 2024). Addi ionally, he phenomenon o
co po a e epu a ion in he MenA egion is s ill new, p ima ily due o he complexi y o assessing co -
po a e epu a ion and he lack o da abases conside ing co po a e epu a ion in he egion (li e al., 2020).
As men ioned be o e, cs disclosu e can enhance co po a e epu a ion by conside ing he in e es s
o a ious s akeholde s, he eby a o ing hei pe cep ions o an en i y (lin, 2024; Mi anda & Miguel,
2024). o e he las ew decades, he e has been inc eased p essu e om go e nmen s, socie y, and
public opinion o companies o engage in cs ac i i ies. ne e heless, i is a gued ha he densi y o
cs ac i i ies in he MenA egion has no eached a simila le el as in Wes e n coun ies (Jamali &
ne ille, 2011). in addi ion, pe cep ions abou he use ulness o cs in he MenA egion a y. skep ics
iew cs as a bu den on he o ganiza ion, po en ially hinde ing he company’s abili y o ocus on weal h
c ea ion. p oponen s, on he o he hand, conside engaging in cs ac i i ies o play a key ole in a
4 i. o. A. e iQA e Al.
company’s success. Add essing wide social conce ns can c ea e mo e business oppo uni ies and enhance
s akeholde s’ pe cep ions (Jamali & ne ille, 2011).
Al hough cs and cs disclosu e in he MenA egion a e claimed o no be clea ly unde s ood, whe e
philan h opy is la gely adop ed (Aqabna e al., 2023), he alue o cs is ecognized. p e ious li e a u e
has demons a ed ha cs exis s in MenA coun ies and is linked wi h highe inancial pe o mance
(Ba aka e al., 2015), highe ma ke alue (Al Amosh & Kha ib, 2023), p e e able epu a ion (Al sakka
e al., 2022), and so on. Fu he mo e, p e ious esea ch no ed ha cs ac i i ies a e mo e applied in
some coun ies, speci ically in he gul s a es, han in o he s in he egion (Aqabna e al., 2023).
howe e , Al‐Ma i e al. (2019) s a ed ha s uc u ed o planned cs can maximize i s bene i s o
bo h an o ganiza ion and an economy. pa icula ly, he MenA egion aces many poli ical, economic, and
en i onmen al challenges, such as high unemploymen a es, e ugee issues, po e y, wa e sca ci y, and
so on (shehadi e al., 2013). in his ligh , policymake s and egula o s encou age MenA companies o
engage in s a egic cs ac i i ies ha help add ess such social needs (Al‐Ma i e al., 2019). Acco ding
o sekha Bha acha yya e al. (2008), s a egic cs helps elimina e adi ional p oblems ela ed o he
implemen a ion o cs ini ia i es. on he o he hand, cs can be applied wi hin p ojec s; when p ojec
managemen s a egies, skills, and knowledge a e employed, hey acili a e achie ing cs objec i es
(salaza e al., 2012).
Despi e he impo ance o s uc u ed cs in o ganizing cs p ac ices, na ional cul u e is an impo an
elemen ha may in luence bo h cs ac i i ies and he way s akeholde s pe cei e hese ac i i ies (gallén
& pe ai a, 2018; pé ez-co nejo e al., 2021). he li e a u e sugges s ha cs is cul u ally embedded, pa -
icula ly in de eloping coun ies (Jamali & ne ille, 2011). in he MenA egion, Whi e and Alkanda i (2019)
s a ed ha cul u al alues a e unique and s ongly oo ed in eligious alues, and hus, hey may shape
he choice o cs ac i i ies, as well as he way s akeholde s pe cei e and in e ac wi h hese ac i i ies.
hese a gumen s d i e he au ho s’ mo i es o examine he impac o na ional cul u e on he ela ion-
ship be ween cs D and co po a e epu a ion in he con ex o MenA’s inancial i ms.
3.Theo e ical li e a u e e iew
his s udy d aws on s akeholde and ins i u ional heo ies. s akeholde s’ heo y is used in his s udy o
explain he di ec ela ionship be ween cs D and co po a e epu a ion, while ins i u ional heo y sup-
po s he in es iga ion ega ding he in luence o na ional cul u e on he ela ionship be ween cs D and
co po a e epu a ion.
3.1. S akeholde s heo y
s akeholde s a e de ined as any indi iduals o g oups who can in luence he company’s pe o mance o
he achie emen o i s objec i es o who can be a ec ed by he company’s beha io (F eeman, 2010).
a ious s akeholde s, including in es o s, employees, cus ome s, supplie s, go e nmen bodies, commu-
ni ies, and o he s, exe in luence on and a e impac ed by he ac i i ies o he company. he e o e, s ake-
holde heo y sugges s ha i ms canno achie e hei objec i es wi hou conside ing and balancing he
in e es s o he di e en g oups o hei s akeholde s ( usso & pe ini, 2010). o apply s akeholde heo y,
i ms should conside he in e es s o he di e en s akeholde s while making decisions and s a egic
planning (B in & nehme, 2019).
he s akeholde heo y s ands as a p ominen cs heo y. esea che s a gue ha cs and s akeholde
heo y a e complemen a y concep s, as bo h concep s a e conce ned wi h he impo ance o inco po a -
ing social esponsibili y o socie al in e es s wi hin a business ope a ion (B in & nehme, 2019; F eeman,
2015). s akeholde s heo y assumes ha engaging in socially esponsible ac i i ies enables a company o
os e a o able ela ionships wi h cus ome s, cul i a e cus ome loyal y, and consequen ly enhance bo h
business pe o mance and epu a ion (pé ez‐co nejo e al., 2020). Acco ding o Mi anda and Miguel
(2024), cs helps o ganiza ions build a s ong co po a e epu a ion and gain he loyal y o cus ome s,
in es o s, and employees. he e o e, much o he p io esea ch has used s akeholde heo y as an
unde lying amewo k o explain he ela ionship be ween cs and co po a e epu a ion (islam e al.,
2021; Ja ed e al., 2020; o henhoe e , 2019).
cogen Business & MAnAgeMen 5
3.2. Ins i u ional heo y
he ins i u ional heo y a gues ha o ganiza ions a e in luenced by a ange o ins i u ional condi ions,
including cul u al, economic, and poli ical ac o s, which shape hei beha io and hei in e ac ions wi h
hei s akeholde s (Buka i e al., 2024). Acco ding o ins i u ional heo is s, o ganiza ions a e equi ed o
con o m o he con ex ual conside a ions o hei business en i onmen o su i e (gallén & pe ai a,
2018). gene ally, ins i u ional heo ies dis inguish be ween o mal and in o mal ins i u ional ac o s.
Fo mal ac o s a e ules, such as egula ions, laws, and cons i u ions, while in o mal ac o s a e socially
sha ed ules, such as eligion, no ms, and cul u e (no h, 1990).
F om his pe spec i e, cul u e is an ins i u ional elemen ha may in luence he likelihood ha an
o ganiza ion will beha e in a way ha is socially esponsible, as well as how indi iduals iew, in e ac
wi h, and unde s and cs ini ia i es (pé ez-co nejo e al., 2021). simila ly, gjølbe g (2009) a gued ha
cs s a egies a e closely in e wined wi h con ex ual conside a ions, including cul u al ac o s, as
na ional en i onmen s shape cs p ac ices. Fu he mo e, ins i u ional ac o s, such as cul u e, play a ole
in shaping s akeholde s’ pe cep ions and in e ac ions wi h co po a e ac i i ies, such as cs (Maignan,
2001). in his ega d, p e ious esea ch illus a es he impac o na ional cul u e on he ela ionship
be ween cs D and co po a e epu a ion wi hin he amewo k o ins i u ional heo y (gallén & pe ai a,
2018; pé ez-co nejo e al., 2021).
4. Empi ical li e a u e e iew and hypo heses de elopmen
4.1. Co po a e social esponsibili y disclosu e and co po a e epu a ion
he e m co po a e social esponsibili y e e s o he olun a y in eg a ion o social and en i onmen al
issues by businesses in o hei business unc ions and s akeholde in e ac ions (eu, 2002). Acco ding o
elmghaamez e al. (2023), cs disclosu e is he communica ion ha businesses make abou how hey
ea hei cus ome s, employees, communi y, and en i onmen .
ecen esea ch ocuses on he implica ions o adop ing cs p ac ices and cs D ( okhaya i e al.,
2024), such as co po a e epu a ion. heo e ically, p io esea ch elucida es he connec ion be ween
cs D and co po a e epu a ion wi hin he amewo k o s akeholde heo y (islam e al., 2021; Ja ed
e al., 2020). s akeholde heo y posi s ha companies conside he in e es s o all s akeholde s, encom-
passing communi ies, supplie s, employees, in es o s, and cus ome s (B in & nehme, 2019). cs D is pe -
cei ed as a mechanism h ough which companies con ey hei dedica ion o di e se s akeholde s. By
disclosing cs ac i i ies, companies can enhance hei epu a ion among s akeholde s when hey become
awa e o companies’ e o s o add ess social and en i onmen al conce ns ( o henhoe e , 2019). in his
ega d, pham and an (2020) a gue ha cs disclosu e is one o he key d i e s o he posi i e in luence
o cs on c ; wi hou epo ing on cs p ac ices, i does no ma e how many cs ini ia i es he com-
pany has unde aken. Acco dingly, Ja ed e al. (2020) demons a ed ha when cs is epo ed and made
public, i imp o es c and c edibili y.
in ligh o hese a gumen s, empi ical s udies ha e es ed he ela ionship be ween cs disclosu es
and c . Fo ins ance, Ja ed e al. (2020) examine he impac o cs disclosu e on c using a sample o
224 pakis ani senio manage s o manu ac u ing i ms in pakis an. hey a gue ha high-quali y disclosu e
o cs ac i i ies enhances c and c edibili y. hei indings e eal a posi i e ela ionship be ween he
disclosu e o cs ac i i ies and co po a e epu a ion. his implies ha o ganiza ions ha p io i ize di e se
s akeholde s in hei ac i i ies ecei e posi i e esponses and a o able e alua ions. Addi ionally, o gani-
za ions can e ec i ely manage hei ela ionships wi h s akeholde s by epo ing hei cs ac i i ies.
simila indings we e epo ed by Be be e al. (2022) o 73 sibe ian p i a e companies. he indings
indica e ha i ms should engage in cs ini ia i es and deli e hem o di e en audiences because
companies ha conside he in e es s o an ex ensi e a ie y o s akeholde s in ela ion o economic,
social, and en i onmen al aspec s a e pe cei ed as mo e aluable o socie y, which in u n enhances
hei c .
likewise, a s udy by Dell’A i e al. (2017) aimed o explo e he ex en o which disclosu e on cs
con ibu es o enhancing a good epu a ion in he banking sec o . his s udy examined 75 in e na ional
banks lis ed on he epu a ion ins i u e and Asse 4 da a du ing he pe iod 2008–2012. he indings
6 i. o. A. e iQA e Al.
e eal a posi i e associa ion be ween cs disclosu e and c . he s udy concluded ha a bank’s commi -
men o cs ac i i ies imp o es i s epu a ion, especially du ing a inancial c isis.
in MenA coun ies, Al sakka e al. (2022) in es iga ed he co ela ion be ween cs disclosu e (cs D)
and co po a e epu a ion (c ) wi hin he uAe con ex . he s udy employed a ques ionnai e-based da a
collec ion me hod a ge ing 595 high-le el manage s in uAe companies. esul s indica ed ha manage s
engaging in cs ac i i ies we e mo i a ed by a o able c . simila ly, Bayoud e al. (2012) explo ed he
cs D-c ela ionship in libya, u ilizing a sample o 149 inancial manage s. he indings e ealed a
s ong associa ion be ween high le els o cs D and c . howe e , i is wo h no ing ha esea che s
gene ally elied on quali a i e app oaches o ga he c da a due o he limi ed co e age o MenA com-
panies in c da abases, as men ioned ea lie . ne e heless, he esul s ega ding he cs D-c ela ion-
ship in he MenA con ex a e consis en wi h indings om o he con ex s.
H1: A posi i e ela ionship exis s be ween cs p ac ice disclosu e and co po a e epu a ion (c ).
4.2. Mode a ing ole o na ional cul u e
cul u e is de ined as he s anda d c i e ion o e alua ion, pe cep ion, in e ac ion, communica ion, and
belie among hose who sha e a common language, his o y, and geog aphical loca ion ( en & g ay,
2009). ins i u ional heo y sugges s ha o ganiza ions a e in luenced by he cul u al alues, such as indi-
idualism and gene alized us , and ins i u ional amewo ks p e ailing in hei en i onmen . he e o e,
he impac o na ional cul u al alues on he ela ionship be ween cs D and co po a e epu a ion can
be unde s ood h ough he lens o ins i u ional heo y by conside ing how cul u al no ms shape o gani-
za ional p ac ices and s akeholde pe cep ions, ul ima ely a ec ing co po a e epu a ion (gallén &
pe ai a, 2018).
in his ega d, he p esen s udy examines he impac o indi idualism and gene alized us as
na ional cul u al dimensions on he ela ionship be ween cs D and c . indi idualism and collec i ism
ep esen he deg ee o which indi iduals a e in eg a ed in o a g oup. indi iduals in indi idualis socie -
ies ocus on hei own in e es s, so hei ies wi h o he indi iduals a e agile. in con as , indi iduals in
collec i is socie ies a e mo e loyal o he g oup and app ecia e goals ha a o socie y as a whole
(go odnichenko & oland, 2012). in an indi idualis ic cul u e, he e is a s ong emphasis on
sel -achie emen , indi idual ini ia i e, and pe sonal goal o ien a ion (ho s ede, 2001). in he business
wo ld, his may ansla e in o a ocus on indi idual pe o mance wi h ewa ds and p omo ions based on
pe sonal o business accomplishmen s. i also encou ages en ep eneu ship, business pe o mance, and
compe i ion (Kueh & ho oon, 2007). esea che s ha e poin ed ou ha indi idualis ic ideology is
s ongly in e connec ed wi h he Ma xis (capi alis ) concep o managemen and o ganiza ion, which has
p o en o be an e ec i e managemen s yle o business success ( u ne , 1988).
in his con ex , Deephouse e al. (2009) a gued ha indi idualism is posi i ely associa ed wi h c in
he con ex o 405 i ms wo ldwide. hey sugges ed ha o ganiza ions a e inc easingly pe cei ed as
places whe e indi iduals can seek esou ces o de elop hei pe sonal in e es s and ca ee s. indi iduals
end o a o co po a ions o e ing signi ican ca ee bene i s o hei employees. hus, in an indi idual-
is ic cul u e, o ganiza ions can be iewed as p o ide s o such oppo uni ies.
Fu he mo e, esea che s ha e a gued ha s akeholde s’ pe spec i es on a company’s cs ac i i ies di -
e among coun ies based on he deg ee o indi idualism and collec i ism (Maignan, 2001). Fo example,
Ma en and Moon (2008) assume ha cs is an explici unc ion o co po a ions in indi idualis ic socie ies.
co po a ions in such socie ies usually olun a ily and indi idually engage in cs ac i i ies mo i a ed by
he pe cei ed a o able expec a ions o di e en s akeholde s. in his con ex , a s udy by peng e al. (2012)
epo ed a posi i e ela ionship be ween indi idualism and cs using an in e na ional sample o 1189 i ms.
con e sely, in collec i is ideologies, cs is seen as an implici unc ion o an o ganiza ion mo i a ed
by cul u al alues and a sense o collec i ism. Fo ins ance, in he MenA coun ies, Whi e and Alkanda i
(2019) epo ed ha i ms in Kuwai olun a ily engage in cs p ac ices due o a s ong sense o co po-
a e ci izenship ha e lec s he collec i is ic cul u e and islamic alues. hus, in his s udy, we assume
ha indi iduals in indi idualis ic socie ies alue he i m’s e o s ega ding cs ac i i ies and he e o e
posi i ely in luence he ela ionship be ween cs D and c .
cogen Business & MAnAgeMen 7
H2a: indi idualism has a posi i e impac on he ela ionship be ween he disclosu e o cs p ac ices and
co po a e epu a ion (c ).
he concep o ‘gene alized us ’ e e s o he an icipa ion o consis en and hones beha io ha
de elops when a socie y adop s mo al p inciples in a way ha es ablishes expec a ions o us wo hi-
ness. in con as , pa icula ized us is a ype o us ha a ises om ace- o- ace in e ac ions wi h
o he s and h ough p e ious social expe iences wi h us ed people (po a e al., 1996).
esea che s widely ecognize ha us in business ac i i ies, such as cs D, is pa icula ized us
because i is linked o a speci ic o ganiza ional ai (Kuma i e al., 2021). p e ious s udies ha e ocused
on he in luence o pa icula ized ypes o us on he ela ionship be ween cs D and c . Bögel (2019)
shows ha disclosu es on cs ac i i ies, along wi h s uden us , a e majo ac o s in main aining he
epu a ion o a ge man uni e si y, using a sample o 232 s uden s. likewise, Fa ma e al. (2015) exam-
ined he e ec o us on he ela ionship be ween co po a e social esponsibili y and co po a e epu-
a ion in he con ex o indian banks. hey used a sample o 303 bank cus ome esponden s. he esul s
showed a posi i e e ec o us on he ela ionship be ween cs ac i i ies and he bank’s epu a ion.
he esul s indica e ha when cus ome s place hei us in he cs ini ia i es unde aken by he bank,
i ein o ces he posi i e ela ionship be ween cs and he bank’s epu a ion.
gene ally, p e ious esea ch has examined he impac o pa icula ized us , such as us om
employees, cus ome s, and o he s, on cs D and c , demons a ing he impo an ole o such ypes o
us in enhancing he ela ionship be ween cs D and c . howe e , e y li le esea ch has in es iga ed
he impac o gene alized us on his ela ionship. gene alized us , as a cul u al alue in a speci ic
con ex , can p o ide an indica ion o us in business (Mishle & ose, 2001), bu i may no necessa ily
ansla e in o us in o mal business ins i u ions (pi son e al., 2019). in some cases, i may e en indica e
low le els o us in o mal business ins i u ions.
p e ious esea ch has linked gene alized us o us in businesses. Fo ins ance, e ans and an de
calseyde (2018) asse ha gene alized us could ha e nega i e epu a ional consequences. simila ly,
lomni z (1988) showed ha in o mal ac i i ies based on in e pe sonal ela ionships a e no andom o
chao ic; on he con a y, hey o m a sys em o exchange based on pe sonal us and loyal y ha ope -
a es alongside o mal adminis a i e ules. likewise, in he case o he MenA egion, esea ch has shown
ha people a e mo e ac i e in he in o mal inancial sec o and end o ha e a highe le el o us in
in o mal ac i i ies. his is because he o e all le el o us in a ious ins i u ions is low, leading indi id-
uals o p e e engaging in in o mal economic ansac ions (sami & lassassi, 2020). Figu e 1 shows he
concep ual amewo k o he s udy.
H2b: gene alized us has a nega i e in luence on he ela ionship be ween cs p ac ice disclosu e and co -
po a e epu a ion (c ).
5. Resea ch design
5.1. Da a
his s udy u ilized seconda y da a o in es iga e he impac o na ional cul u e on he co ela ion
be ween cs D and co po a e epu a ion. Da a we e sou ced om mul iple ou le s, wi h each indica o
Figu e 1. Concep ual amewo k.
14 i. o. A. e iQA e Al.
indi iduals in collec i is socie ies may pe cei e such ac i i ies as one o he implici unc ions o he
company (Ma en & Moon, 2008; peng e al., 2012), which also suppo s he s udy’s hypo hesis (h2a).
ci izens o a coun y wi h a high le el o indi idualism gi e special weigh o olun a y and unpaid
g oups as well as o pe sonal ini ia i e (hus ed, 2005). Because hese ai s se e as he co ne s one o
s a us quo-challenging o ganiza ional beha io , membe s o hese o ganiza ions a e mo e likely o ad o-
ca e o social and en i onmen al change. Mo eo e , because g oup solida i y is less impo an in an
indi idualis ic cul u e, indi iduals om an indi idualis ic socie y a e mo e inclined o denounce social
and en i onmen al illegal ac i i ies ( achon, 2010).
in he MenA con ex , he esul s sugges ha he le el o indi idualism in MenA coun ies, including
pales ine, Jo dan, Qa a , and Kuwai , enhances s akeholde s’ pe cep ions o cs D p ac ices adop ed by
MenA inancial i ms, he eby s eng hening he posi i e impac o cs D on hei epu a ion. he e o e,
inancial i ms and policymake s in hese MenA coun ies should ake he indi idualis ic ideology in o
accoun when planning and implemen ing cs ac i i ies o maximize he bene i s o cs .
Model (3) indica es ha he mode a ion e ec o gene alized us on cs D has a nega i e and sig-
ni ican impac on c (p < 0.01). hese indings align wi h he assump ion o ins i u ional heo y, which
sugges s ha o ganiza ions mus ake in o accoun con ex ual ac o s, such as na ional cul u e in hei
business ope a ions (gjølbe g, 2009). indeed, his esul ein o ces ou p e ious discussion ega ding he
ole o na ional cul u e as an ins i u ional ac o in de e mining he ela ionship be ween cs D and c ,
as e idenced by he u iliza ion o ano he cul u al a ibu e, i.e. gene alized us .
he esul s sugges ha gene alized us weakens he ela ionship be ween cs D and c . p e ious
empi ical esea ch has gene ally ocused on he ole o pa icula ized ypes o us , such as us among
cus ome s and employees, in enhancing pe cep ions ega ding cs D. hese s udies ha e ound a posi-
i e associa ion be ween pa icula ized us and bo h cs D and c (Bögel, 2019; Fa ma e al., 2015).
howe e , gene alized us as a cul u al alue may no necessa ily ansla e in o us in business.
Mo eo e , in some cases, a high le el o gene al us among people may indica e low le els o us in
o mal businesses.
in he case o he MenA egion, he indings o sami and lassassi (2020) indica e ha indi iduals in
he MenA egion place mo e us in in o mal economic ac i i ies due o hei low le el o us in a -
ious o mal ins i u ions. simila ly, as no ed by An oci e al. (2006), gene alized us becomes e ec i e in
an economy only when o ganiza ions a e pe cei ed as us wo hy, meaning ha hey a e conside ed
in eg al o b oade socie al us . consis en wi h hese indings, he esul s sugges ha in such MenA
coun ies, a highe le el o gene alized us may indica e a lowe le el o pa icula ized us owa d
o mal inancial i ms, he eby nega i ely in luencing he ela ionship be ween cs D and c . consequen ly,
he indings sugges ha inancial i ms need o cul i a e pa icula us wi h hei s akeholde s o max-
imize he epu a ional bene i s o hei cs ac i i ies and aise awa eness abou hei cs ini ia i es.
hese esul s con i m he s udy hypo hesis (h2b).
he indings o he lagged alue o c in ela ion o he s udy’s con ol a iables demons a e a sub-
s an ial posi i e impac on c (p < 0.05), Models (1 and 3), and Model (2) (p < 0.10). Acco ding o pé ez‐
co nejo e al. (2020) and o henhoe e (2019), he indings suppo he no ion held by expe s ha c
has a dynamic na u e ha builds g adually o e ime. c and Models (1, 2, and 3) a e posi i ely and
s a is ically signi ican ly impac ed by i m size (p < 0.01). As expec ed, big businesses ha e g ea e ma ke
isibili y and access o esou ces ha help hem es ablish hei b ands compa ed o small businesses
(Delgado‐ga cía e al., 2013).
Fu he indings show ha le e age signi ican ly and nega i ely a ec s c (p < 0.05) in Models (1) and
(3) and (p < 0.01) in Model (2). his inding suppo s he hypo hesis ha in es o s a o businesses wi h
sound inancial plans since o e using loans pu s he business unde ongoing s ain and aises he pos-
sibili y o unp edic able di idend paymen s o sha eholde s (Adenugba e al., 2016). he e o e, compa-
nies wi h highe le e age a e expec ed o ha e a lowe epu a ion because he u u e bu den on hem
may a ec hei long- e m su i al (Jao e al., 2020).
he ela ionship be ween gDp and c is unclea . We expec his ela ionship o be posi i e, while he
esul s show ha a highe gDp does no necessa ily imp o e c , as a highe gDp is no necessa ily
associa ed wi h good p ac ices and beha io s by companies ha , in u n, will c ea e a good epu a ion.
howe e , some empi ical s udies ha e ound simila esul s (Dell’A i e al., 2017). Finally, he ela ionship
cogen Business & MAnAgeMen 15
be ween he in la ion a e and co po a e epu a ion was ound o be nega i e and s a is ically signi ican
(p < 0.01) in Models (1 and 3) and (p < 0.05) in Model (2). his ela ionship mee s expec a ions, as a high
in la ion a e can nega i ely in luence coun y-le el epu a ion, cen al bank epu a ion, con idence in he
p i a e sec o , and i s abili y o main ain p ice s abili y (hwang, 2018).
Fo all h ee models (1, 2, and 3), he esul s o he diagnos ic es s needed o he gMM dynamic
models a e gene ally sa is ac o y. he esul s o he A 1 es , which sugges s he e was no i s -o de
se ial co ela ion, ha e been ejec ed, while he esul s o A 2 ega ding he assump ion ha he e was
no second-o de se ial co ela ion ha e no been ejec ed. Finally, he ac ha he hansen es o ins u-
men o e es ima ion was no ejec ed sugges s ha he ins umen s used we e alid.
6.4. Al e na i e analysis
A se o obus ness checks was conduc ed o e alua e he sensi i i y o he esul s o al e na i e es ima-
ion me hods, such as pooled o dina y leas squa es (pols) and ixed e ec model (FeM). As men ioned
p e iously, oodman (2009) a gued ha he esul s o pols and FeM could be biased o dynamic
eg ession models because he lagged dependen a iable co ela es wi h he e o e m. he e o e, o
employ hese es ima ion echniques, we excluded he dynamic na u e o his analysis o mi iga e he
po en ial o biased esul s. able 8 p esen s he esul s ob ained by he pols es ima ion, which show a
high le el o consis ency when compa ed o he esul s ob ained om he gMM es ima ion.
Fu he mo e, he ixed e ec and andom e ec models o e mo e ad an ages han pols, as hey
a e designed o add ess he e ogenei y. he ixed e ec model (FeM) is es ima ed using leas squa es
dummy a iables (lsD ), which in ol es c ea ing dummy a iables o each c oss-sec ional uni in he
panel o cap u e indi idual e ec s. on he o he hand, he andom e ec model ( eM) assumes ha
he he e ogenei y ac oss indi iduals is s ochas ic and unco ela ed wi h he explana o y ac o s (nickell,
1981). in his con ex , he hausman es de e mines he be e model be ween FeM and eM based
on he na u e o he analyzed panel da a. he esul was s a is ically signi ican , indica ing ha eM is
ejec ed and FeM is he p e e ed model, as shown in able 9. he e o e, FeM is employed in his
pape as an al e na i e analy ical app oach o he s udy indings. howe e , he esul s p esen ed in
able 9 a e consis en wi h hose ob ained om he gMM es ima ion, p o iding a o m o obus ness
o he s udy esul s.
7. Summa y and conclusion
his s udy in es iga es he impac o na ional cul u e on he ela ionship be ween cs D and c among
inancial i ms lis ed in MenA s ock ma ke s. he main indings indica e a posi i e e ec o cs D on c .
Mo eo e , he esul s e eal ha indi idualism posi i ely mode a es he ela ionship be ween cs D and
c , whe eas gene alized us exe s a nega i e in luence on his ela ionship.
his s udy p o ides se e al con ibu ions. Fi s ly, i de elops a quan i a i e co po a e epu a ion index
by amalgama ing a ious dimensions o co po a e epu a ion h ough pcA. such an index o e s addi-
ional insigh s o he esea ch communi y o assessing co po a e epu a ion s a us. secondly, he s udy
unde sco es he necessi y o cs ini ia i es in he MenA egion, aiding manage s and policymake s in
comp ehending cs s a egic planning be e . hi dly, i add esses an empi ical gap obse ed in p e ious
esea ch on co po a e epu a ion, pa icula ly in he con ex o de eloping coun ies like he MenA
egion, whe e ew s udies ha e been conduc ed. las ly, his s udy enhances unde s anding o he ela-
ionship be ween cs D and c by examining he mode a ing in luence o na ional cul u e on his
ela ionship.
Fu he mo e, he s udy’s indings p o ide se e al implica ions and ecommenda ions. he esul s indi-
ca e ha disclosing cs ini ia i es o di e en s akeholde s helps o ganiza ions imp o e hei epu a ion.
s akeholde s a e mo e willing o eac posi i ely o o ganiza ions ha egula ly p ac ice socially espon-
sible ini ia i es. he e o e, manage s o he MenA’s inancial i ms a e ecommended o engage in cs
ac i i ies and cs disclosu e o enhance he company’s epu a ion among s ockholde s. his in ol es no
only engaging in socially esponsible p ac ices bu also e ec i ely con eying hese e o s o
16 i. o. A. e iQA e Al.
s akeholde s. A clea and anspa en disclosu e can enhance he pe cei ed alue o hese ac i i ies. in
his ega d, policymake s can p omo e he adop ion o s anda dized cs epo ing amewo ks and
guidelines o inancial companies in he MenA egion. clea and consis en epo ing s anda ds can
enhance anspa ency, compa abili y, and c edibili y in cs disclosu es, enabling s akeholde s o make
in o med decisions.
he esul s also show ha cul u e is an impo an ins i u ional aspec ha in luences how s akehold-
e s iew a company’s cs ac i i ies and, consequen ly, how di e en cul u al alues a ec he
Table 8. Resul s o al e na i e es ima ion me hod (PoLs).
Va iables
(PoLs) (PoLs) (PoLs)
Model 1 Model 2 Model 3
CsRD 0.143*** 0.0961*** 0.136***
(0.0238) (0.0244) (0.0236)
CsRD-iD – 2.428*** –
(0.482)
iD – −0.151 –
(0.112)
CsRD- – – −1.888***
(0.296)
– – 0.185*
(0.0976)
Fs 0.0706*** 0.0624*** 0.0678***
(0.00875) (0.00854) (0.00860)
FL −0.00563*** −0.00444*** −0.00596***
(0.00173) (0.00167) (0.00166)
gDP −0.0114 0.0331* −0.0318
(0.0185) (0.0196) (0.0194)
in −0.00212* −0.00132 −0.00178*
(0.00109) (0.00105) (0.000985)
indus y Yes Yes Yes
Cons an −0.0280 −0.315* 0.198
(0.174) (0.174) (0.189)
obse a ions 480 480 480
R-squa ed 0.405 0.455 0.456
No e: s anda d e o s in pa en heses.
***p < 0.01, *p < 0.1.
Table 9. Resul s o al e na i e es ima ion me hod (Fe).
Va iables
(Fe) (FeM) (FeM)
Model 1 Model 2 Model 3
CsRD 0.0932*** 0.0718** 0.105***
(0.0297) (0.0296) (0.0289)
CsRD-iD – 2.324*** –
(0.602)
iD – −0.197 –
(0.154)
CsRD- – – −1.818***
(0.369)
– – 0.211
(0.134)
Fs 0.0784*** 0.0666*** 0.0721***
(0.0122) (0.0116) (0.0116)
FL −0.00691*** −0.00560*** −0.00692***
(0.00224) (0.00213) (0.00210)
gDP 0.00136 0.0384 −0.0263
(0.0257) (0.0260) (0.0262)
in −0.00117 −0.000850 −0.00113
(0.000998) (0.000983) (0.000985)
indus y Yes Yes Yes
Cons an −0.126 −0.296 0.199
(0.244) (0.232) (0.255)
obse a ions 480 480 480
numbe o i m iD 96 96 96
Hausman es (FeM s. ReM) 25.65*** 10.74*** 16.78**
(0.000) (0.009) (0.010)
No e: s anda d e o s in pa en heses.
***p < 0.01, **p < 0.05.
cogen Business & MAnAgeMen 17
ela ionship be ween cs D and c . As a esul , decision-make s and manage s need o unde s and he
na ional cul u e o he na ion in which hey do business. in pa icula , he esul s indica e ha indi idu-
alism s eng hens he posi i e ela ionship be ween cs D and c . in his ligh , inancial i ms in he
MenA egion a e ecommended o align hei cs ini ia i es wi h he alues and expec a ions o indi-
idualis ic cul u es. his may in ol e p io i izing ini ia i es ha emphasize pe sonal eedom, indi idual
achie emen , and sel -exp ession.
on he o he hand, he esul s showed ha gene alized us weakens he ela ionship be ween cs D
and c . he e o e, inancial i ms in he MenA egion should conduc ho ough assessmen s o he cul-
u al con ex in which hey ope a e, including le els o gene alized us , o be e unde s and how hei
cs ini ia i es may be pe cei ed by s akeholde s. in addi ion, manage s should p oac i ely wo k o build
pa icula ypes o us wi h di e en s akeholde s h ough consis en and anspa en beha io . howe e ,
om a heo e ical pe spec i e, he esul s o his s udy suppo he assump ions o he s akeholde and
ins i u ional heo ies ha we e used in his s udy as unde ling heo ies o explain he s udy’s hypo heses.
he s udy aces some limi a ions ha o e a enues o u u e esea ch. he s udy elied on quan i a-
i e da a ga he ed om seconda y sou ces o his in es iga ion. Quali a i e componen s o c may
po en ially be he subjec o u u e in es iga ion, such as p oduc quali y, employee mo ale, and cus-
ome sa is ac ion. simila ly, quali a i e aspec s o cs D, including in e iews wi h highe managemen
ega ding hei pe cep ions, planning, and aims o adop ing cs p ac ices and cs D a e impo an
domains ha could be examined in u he esea ch.
Mo eo e , he cu en s udy aced some limi a ions ega ding da a a ailabili y. he p ima y challenge
was missing da a, which hinde ed he expansion o he sample o include mo e coun ies in he egion
and ex end he s udy pe iod, pa icula ly due o he lack o da abases necessi a ing manual da a collec-
ion. he e o e, i is no possible o gene alize he indings o his s udy o o he indus ies o na ions in
he egion. in pa icula , i would be aluable o conduc u he esea ch o explo e hese ela ionships
in he con ex o o he indus ies and MenA na ions.
Addi ionally, he s udy elied on he Wo ld alues su ey da abase o collec da a o na ional cul u e
a iables, including indi idualism and gene alized us . ho s ede’s dimensions o na ional cul u e a e also
commonly used da abases o na ional cul u e. his da abase includes mo e cul u al ai s, such as mas-
culini y, powe dis ance, and unce ain y a oidance, bu i didn’ co e all he coun ies included in he
s udy sample. Fu he esea ch could explo e he mode a ing impac o such cul u al a ibu es in o he
con ex s whe e he da a a e a ailable.
Finally, in Middle eas e n socie ies, whe e he islamic eligion is mos p e alen , cs can be iewed as
an ac o obedience o god. he e o e, i would be no ewo hy o in es iga e he implica ions o cs
om an islamic pe spec i e. Addi ionally, i is impo an o u he esea ch o conduc a compa a i e
analysis o di e en ypes o us , including gene alized us and pa icula ized us , and hei impac
on he ela ionship be ween cs D and c .
E hical app o al
he e hical app o al s a emen is no applicable because he esea ch pape does no include animals
o humans as subjec s.
Au ho s con ibu ions
ib ahim o. A. e iqa : concep ualiza ion, me hodology, da a collec ion, da a analysis, esul s in e p e a ion, and w i ing
he i s d a o he pape . Muhammad ahi e iewed he da a analysis, esul s in e p e a ion, da a cu a ion, and
e ised he s udy c i ically o in ellec ual con en . Abdul hadi Zulka li con ibu ed o concep ualiza ion, supe ision,
adminis a ing he esea ch eam, and e ising he s udy c i ically o in ellec ual con en . All au ho s ag ee o be
accoun able o all aspec s o he wo k. All au ho s ha e ead he con en s and ag eed wi h he publica ion o
he s udy.
Disclosu e s a emen
no po en ial con lic o in e es was epo ed by he au ho (s).
18 i. o. A. e iQA e Al.
Da a
he s udy u ilized seconda y da a sou ces, including i ms’ annual epo s, he Wo ld Bank da abase, and he Wo ld
alue su ey da abase. hese sou ces a e a ailable o he gene al public. Da a collec ion was conduc ed manually.
he size o he da ase comp ises 480 obse a ions o each a iable.
Funding
he e was no inancing o he s udy.
Abou he au ho s
Ib ahim O.A. E iqa has a phD in Accoun ing- co po a e go e nance and co po a e Finance om he school o
managemen , uni e si i sains Malaysia. his esea ch a ea is in e es ed in he ields o co po a e go e nance, sus ain-
abili y, co po a e social esponsibili y, co po a e epu a ion, inancial sec o , and inancial inclusion. cu en ly, he is
wo king as a lec u e a he accoun ing, axa ion, and audi depa men , school o accoun ing and inance, Asia
paci ic uni e si y o echnology and inno a ion, Kuala lumpu , Malaysia.
Muhammad Tahi is an Assis an p o esso a he Depa men o Managemen sciences, uni e si y o u ba ,
Balochis an pakis an. he ea ned his phD in in e na ional Finance om he school o Managemen a uni e si i sains
Malaysia. his a ea o esea ch is in e na ional inance, co po a e inance, and co po a e go e nance.
Abdul Hadi Zulka li is a senio lec u e and he chai pe son o Finance and islamic Finance a he school o
Managemen , uni e si i sains Malaysia. he was con e ed he Doc o o philosophy (Finance) om he uni e si y o
Malaya. he eaches p inciples o Finance, co po a e Finance, en ep eneu ial Finance, Analysis o Financial s a emen s,
and en e p ise isk Managemen . he has published and e iewed a icles in he a eas o co po a e Finance co po a e
go e nance and sus ainabili y.
ORCID
ib ahim o.A. e iqa h p://o cid.o g/0000-0002-6777-9472
Abdul hadi Zulka li h p://o cid.o g/0000-0001-6087-1746
Da a a ailabili y s a emen
he au ho s con i m ha da a suppo ing he indings o his s udy will be a ailable upon easonable eques .
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22 i. o. A. e iQA e Al.
Appendix A. sample cha ac e is ics
Popula ion o he s udy
Coun y o exchange insu ance Banking oFs o al
Jo dan 20 15 29 64
Pales ine 8 6 0 14
Qa a 6 9 4 19
Kuwai 7 9 31 47
o al popula ion o he s udy 41 39 64 144
ini ial sample
Coun y o exchange insu ance Banking oFs o al
Jo dan 10 15 12 37
Pales ine 8 6 0 14
Qa a 6 9 4 19
Kuwai 2 8 20 30
o al ini ial sample 26 38 36 100
Final sample
Coun y o exchange insu ance Banking oFs o al
Jo dan 10 15 12 37
Pales ine 7 6 _ 13
Qa a 4 8 4 16
Kuwai 2 8 20 30
o al inal sample 23 37 36 96
No es: o ai ly ep esen he wo g oups o coun ies, he s udy sample consis ed o all insu ance, banking and o he inancial se ices com-
panies lis ed in Qa a and Pales ine ( he Pales ine s ock exchange does no ha e an oFs indus y) while he s udy conside ed he 37 and 30
la ges inancial companies in Jo dan and Kuwai , espec i ely, based on he ma ke capi aliza ion in he las yea o he analyzed pe iod
(2020). hus, he ini ial sample consis ed o 100 inancial i ms, wi h 50 companies om Jo dan and Pales ine (non-oil expo ing coun ies)
and 50 companies om Qa a and Kuwai (oil-expo ing coun ies). a e da a collec ion, companies wi h a signi ican amoun o missing da a
we e excluded; he e o e, he inal sample comp ised 96 companies dis ibu ed ac oss sec o s and coun ies as desc ibed abo e.
Appendix B.summa y o he s udy a iables
Cons uc Va iable symbol De ini ion sou ce o in o ma ion
Dependen a iable:
co po a e
epu a ion
Re u n on asse s Roa ne income be o e ax o o al asse s Fi m’s annual epo
Re u n on equi y Roe ne income be o e ax o o al equi y Fi m’s annual epo
Ma ke sha e Ms o al e enue o a i m o o al e enue o all i ms in he
same indus y
Fi m’s annual epo
Human capi al
e iciency
HCe Re enue − ( o al cos − employee cos )/employee cos Fi m’s annual epo
P ice o ea nings
a io
Pe ne income a e ax/weigh ed a e age numbe o common
sha es
Fi m’s annual epo
Ma ke o book
alue a io
MB Ma ke capi aliza ion/book alue o a company asse s Fi m’s annual epo
independen
a iable: CsRD
index
Co po a e social
esponsibili y
disclosu e
CsRD index includes 37 i ems in ela ing o CsR aspec s Fi m’s annual epo
Mode a e a iables:
na ional cul u e
indi idualism iD a ques ion a ing om 1 o 10 om he wo ld alue su ey.
Whe e 1 indica es ha you o ally ag ee wi h collec i ism.
10 indica e you o ally ag ee wi h indi idualism. ‘How
would you place you iews on his scale? 1 means you
comple ely ag ee wi h he s a emen on he le ; 10 mean
you ag ee comple ely wi h he s a emen on he igh ;
and i you iews all somewhe e in be ween, you can
choose any numbe in be ween: Incomes should be made
equal? We need la ge income di e ences as incen i es
o indi idual e o ’
Wo ld alues su ey
gene alized us a ques ion om he wo ld alue su ey. abou o wha ex en
you us people. ‘Gene ally speaking, would you say ha
mos people can be us ed o ha you need o be e y
ca e ul in dealing wi h people?’
Wo ld alues su ey
Con ol a iables Fi m size Fs Log o a i m o al asse s Fi m’s annual epo
Financial le e age FL o al liabili ies/ o al equi y Fi m’s annual epo
indus y dummy ialloca ing a numbe o each indus y included in he s udy s ock exchanges
g oss domes ic
p oduc
gDP Coun y annual gDP Wo ld bank da abase
in la ion a e in Coun y annual in la ion a e Wo ld bank da abase
cogen Business & MAnAgeMen 23
Appendix 3.cs i ems checklis
numbe CsRD index
sub index a en i onmen al disclosu e (eD):
1 he company policy conce n en i onmen /en i onmen al issues
2 he company conce ns o en i onmen al managemen
3Pa icipa ion in en i onmen al/pollu ion p o ec ion p og ams
4Conse a ion o na u al esou ces
5Recycling p oduc s/se ices was e
6Compliance wi h en i onmen al egula ions
7Join p ojec s wi h o he o ganiza ions p o iding en i onmen al p o ec ion and managemen
8Reduc ion, p e en ing o epai ing en i onmen al damage
9Disposal o was e in p ope manne
10 suppo ac ions designed o p o ec en i onmen
sub index B Human esou ce disclosu e (HRD):
1 he company conce ns o heal h and sa e y o employees
2 he company conce ns o employee wages and sala y le el
3 he company adop s compensa ion/pension sys em
4numbe o employees in he company
5 alen ed employees ecei ed incen i es, bene i s, and ewa ds
6 he company conce ns o he sa e y o wo kplace
7Human esou ce de elopmen ( aining p og ams and educa ion)
8es ablishmen o aining cen e s o employees
9Remune a ion/package sys em.
10 Managemen /company e o s o imp o e employees’ sa is ac ion and mo i a ion
11 Holidays and aca ions sys em
12 P o iding in o ma ion on job s abili y, wo ke s s abili y and he company’s u u e
sub index C P oduc and consume disclosu e (PCD):
1P oduc /se ice sa e y
2High p oduc /se ice quali y
3 he company conce ns o cus ome sa is ac ion
4Conce n/ esponsi eness o cus ome s complain s
5P o iding in o ma ion ela ed o imp o ing p oduc /se ice quali y
6Cus ome se ice imp o emen
sub index D Communi y in ol emen disclosu e (CiD):
1Dona ions o he cha i y ac i i ies
2es ablishmen o pa ks and ga dens
3social wel a e/sponso ing social ac i i ies
4suppo public heal h
5P o iding job oppo uni ies/help in educing unemploymen a e and job c ea ion
6suppo educa ional ins i u ions
7suppo cul u e and a s
8Pa icipa e o con ibu ion in communi y se ing p og ams, such as elimina e c imes, co up ion, and illi e acy
9sponso ing s uden s ‘educa ion and schola ships
o al 37 i ems o CaRD index
