Corporate social responsibility disclosure (CSRD) determinants of listed companies in Palestine (PXE) and Jordan (ASE)

The purpose of this study is to characterize and evaluate corporate social responsibility disclosure (CSRD) practices in Palestine and Jordan; and to determine the formal institutional factors that can influence in CSRD—the legal context and the existence of control mechanisms such as external audits and corporate governance. We analyse whether CSR in Palestine—a country under Israeli occupation and in a state of war that has lasted decades—possesses specific characteristics or follows the same model than Western countries. Besides, we have chosen Jordan in order to highlight possible differences between similar countries. Jordan and Palestine have a similar cultural context because many Palestinians have immigrated to Jordan, but the former is living in a state of stability and safety. The sample of the study consists of 101 companies; the data refers to 2011. Our results show that levels of CSRD in Jordan are higher than in Palestine in all aspects, though it is low in both countries when compared with Western countries. Both countries enhance the same issues but, in relative terms, Palestinian firms present a greatest concern on issues related to human resources and commitment towards community. Moreover, we have found a positive association between CSRD and the legal system, external auditor firm characteristics and corporate governance (e.g. board size and board audit committee). Other aspects related to corporate governance, such as the existence of a board governance committee or board independence, do not affect the level of CSRD.