The Impact Of Ownership Structure And Board Characteristics On Corporate Social Responsibility Disclosed By Palestinian Companies

The purpose of this study is to investigate the extent and nature of Corporate Social Responsibility Disclosure (CSRD) of the companies listed on the Palestine Exchange (PEX). The study is also set to examine the impact of ownership structure and board characteristics on the level of CSRD. Relevant data was collected from a sample of 44 companies' annual reports for the period from 2013 to 2017. CSRD is measured by constructing and applying a disclosure index, including 30 items of social responsibility information. It was found that a company discloses on average 43.7% of the items included in the index. A significant positive relationship was found between board independence, gender diversity, audit committee, firm size, auditor type and CSRD. In contrast, a significant negative relationship was found between board size, CEO duality and CSRD. This study is expected to contribute to the literature on accounting by providing an understanding of the relationship between ownership structure and board characteristics on one hand and CSRD on the other hand. It also provides evidence on the adequacy of board’s guidelines in the corporate governance practices in Palestine (Corporate Governance Code, 2009). The findings of this study should assist Palestinian regulators in revising and improving regulations and practices related to CG and CSR disclosure.