Social responsibility accounting and financial performance during COVID-19: A survey of the firms listed in Amman Stock Exchange

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Abstract

The need to activate the concept of social responsibility accounting has increased, especially in light of the difficult economic challenges and the increase in competition between companies (Shahwan et al., 2022a). This study aims at identifying the impact of applying social responsibility accounting on the financial performance of public shareholding companies listed on the Amman Stock Exchange (ASE) during the COVID-19 pandemic. To achieve the aim of this study, the researcher developed a questionnaire, where the study population consisted of public shareholding companies and the population was 173 companies according to the ASE. In this study, questionnaires were used to collect the data, and the Statistical Package for the Social Sciences (SPSS) used to analyze the data. This study finds that there is a significant impact of social responsibility accounting on the financial performance represented by the return on assets for public shareholding companies listed on the ASE during the COVID-19 pandemic. This study recommended that there is a need for public shareholding companies to work to apply the activities related to social responsibility accounting in its various dimensions (employees, environment, society, and product). In addition, the companies should work to meet the desires of all members of society, which will lead to an increase in the community’s confidence in the company, and this will reflect positively on its financial performance in general and the return on assets specifically.

Keywords: Social Responsibility Accounting, Financial Performance, Return on Assets, Public Shareholding Firms

Authors’ individual contribution: Conceptualization — Y.S. and M.H.; Methodology — Y.S.; Formal Analysis — Y.S. and H.K.L.; Resources — Y.S.; Data Curation — Y.S. and O.M.K.; Writing — Original Draft — Y.S. and O.M.K.; Writing — Review & Editing — Y.S.; Supervision — Y.S. and H.K.L.; Funding Acquisition — Y.S. and M.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The Authors would like to acknowledge Zarqa University for providing insight and expertise that greatly assisted the research. This research was funded by Deanship of Research, Zarqa University, Jordan.

JEL Classification: M00, M14, M40, M49, Q56

Received: 11.06.2022
Accepted: 27.01.2023
Published online: 30.01.2023

How to cite this paper: Shahwan, Y., Hamza, M., Lubad, H. K., & Khresat, O. M. (2023). Social responsibility accounting and financial performance during COVID-19: A survey of the firms listed in Amman Stock Exchange. Journal of Governance & Regulation, 12(1), 93–99. https://doi.org/10.22495/jgrv12i1art9