The impact of risk disclosure on the corporate social responsibility of banks

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Abstract

This paper’s objective is to examine how Jordanian banks exposing risks affects their corporate social responsibility (CSR) (Pham & Tran, 2020; Abu Qa’dan & Suwaidan, 2019). The primary purpose of the study is to evaluate how risk disclosure and CSR are related in Jordan’s banking industry. For this investigation, information was gathered from 23 Jordanian banks that are listed on the Amman Stock Exchange (ASE) throughout a ten-year period, from 2010 to 2019. CSR was utilized as the dependent variable in a regression model that included four independent variables to represent the risk disclosure. The investigation included measures to guarantee that the outcomes were unaffected by the age of each bank, its size, leverage, and return on equity (ROE). The study’s results indicate that there was a positive correlation between the independent variables and CSR. This implies that risk disclosure is a useful strategy for enhancing CSR in the banking sector. The results of this study have significant applications for policymakers, future scholars, and bank managers. In order to comprehend the connection between risk disclosure and CSR in different nations and within various industries, the study further emphasizes the significance of further research in this area.

Keywords: Corporate Social Responsibility, Risk Disclosure, Jordanian Banks

Authors’ individual contribution: Conceptualization — M.M., S.I., S.A., F.N.D., and E.G.; Methodology — M.M., S.I., S.A., F.N.D., and E.G.; Software — M.M., S.I., S.A., F.N.D., and E.G.; Validation — M.M., S.I., S.A., F.N.D., and E.G.; Formal Analysis — M.M., S.I., S.A., F.N.D., and E.G.; Investigation — M.M., S.I., S.A., F.N.D., and E.G.; Resources — M.M., S.I., S.A., F.N.D., and E.G.; Data Curation — M.M., S.I., S.A., F.N.D., and E.G.; Writing — Original Draft — M.M., S.I., S.A., F.N.D., and E.G.; Writing — Review & Editing — M.M., S.I., S.A., F.N.D., and E.G.; Visualization — M.M., S.I., S.A., F.N.D., and E.G.; Supervision — M.M., S.I., S.A., F.N.D., and E.G.; Project Administration — M.M., S.I., S.A., F.N.D., and E.G.; Funding Acquisition — M.M., S.I., S.A., F.N.D., and E.G.

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

JEL Classification: M40, M41, M48

Received: 12.04.2023
Accepted: 10.01.2024
Published online: 12.01.2024

How to cite this paper: Mahmoud, M., Ismail, S., Ahmad, S., Dahmash, F. N., & Ghaidan, E. (2024). The impact of risk disclosure on the corporate social responsibility of banks. Journal of Governance & Regulation, 13(1), 63–72. https://doi.org/10.22495/jgrv13i1art6