An Empirical Analysis of the Relationship between Characteristics and Corporate Social Disclosures of Selected Public and Private Sector Companies in India

Abstract

Firms have responsibility to undertake social activities and report such activities depending upon firms’ characteristics and attributes such as financial soundness and profitability. The present study is an attempt to examine the association between a company's characteristics and the extent of corporate social disclosure and motives behind them. An index, consisting of 20 items, of social accounting disclosure has been constructed and these items have been fitted into the disclosure index assigning score 1 for disclosure and score 0 for non-disclosure. The study found that a significant positive relationship exists between the size of companies, ROA & CCF and the level of Corporate Social Disclosure; while a significant negative relationship exists between the LIQ, SOL & TURN and the level of Corporate Social Disclosure.