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Corporate Social Responsibility Disclosure and Stock Market Liquidity: The Case of Jordan

Author

Listed:
  • Ruwaidah H. Haddad

    (Department of Accounting, Yarmouk University, Irbid P.O. Box 566, Jordan)

  • Ayman E. Haddad

    (College of Business and Economics, American University of Kuwait (AUK), Safat 13034, Kuwait)

  • Ayham Haddad

    (Kellstadt Graduate School of Business, DePaul University, Chicago, IL 60604, USA)

  • Nabeel Sawalha

    (College of Business and Economics, American University of Kuwait (AUK), Safat 13034, Kuwait)

Abstract

This study aims to evaluate the level of corporate social responsibility (CSR) disclosure in the annual reports of Jordanian companies, and to examine its impact on stock market liquidity. The findings indicate a significant variation in the extent of CSR disclosure among the companies, with an average disclosure rate of 48.12% of the applicable items. The regression analysis results show no significant relationship between CSR disclosure and the bid–ask spread. The study concludes that investors do not heavily rely on CSR disclosures when making decisions about trading involving Jordanian companies. This lack of dependence may be attributed to such information’s perceived inaccuracy or incompleteness. Investors may turn to alternative sources of information, such as news sources, and even advice from their networks.

Suggested Citation

  • Ruwaidah H. Haddad & Ayman E. Haddad & Ayham Haddad & Nabeel Sawalha, 2023. "Corporate Social Responsibility Disclosure and Stock Market Liquidity: The Case of Jordan," Sustainability, MDPI, vol. 16(1), pages 1-14, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2023:i:1:p:88-:d:1304633
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    References listed on IDEAS

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