Quantity versus quality: the value relevance of CSR disclosure of Saudi companies

Khaleed Alotaibi, Khaled Hussainey

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We offer a novel contribution by examining the impact of Corporate Social Responsibility (CSR) disclosure quantity and quality on firm value. We use a sample of 171 non-financial firms listed in the Saudi stock market for the period 2013-2014. We complement and extend the work of Hasseldine, Salama and Toms (2005) by measuring the quantity and quality of CSR disclosure and examining their impact on firm value. To measure CSR disclosure quality, we following Beest el al (2009) and capture all qualitative attributes of information quality as defined in the conceptual framework of the IASB (2010 a). We use a CSR disclosure index to measure the quantity of disclosure.
Our analysis shows a positive association between CSR disclosure quality and quantity and market capitalisation. However, we did not find the same results when we use either Tobin’s Q or Return on Assets (ROA) as proxies for firm value. This suggests that both CSR disclosure quantity and quality have the same impact on firm value. However, the significance of this impact depends on whether the authors use market capitalisation, Tobin’s Q or ROA.
Original languageEnglish
Pages (from-to)167-179
JournalCorporate Ownership and Control
Issue number2
Early online date21 Jan 2016
Publication statusPublished - Feb 2016


  • Corporate Social Responsibility
  • Disclosure Quantity versus Quality
  • Firm Value
  • Saudi Arabia


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