Abstract
The current study aims to explore the impact of the quality and quantity of web-based Corporate Social Reporting Disclosure (CSRD) on corporate cash holdings in the context of top global Islamic and non-Islamic banks. To do So we use regression analysis through the Pearson Rank correlation and apply three machine learning models (ML regression, KNN (1,5), and SVM).
Our Sample has taken into consideration Sustainability and Corporate Social reporting disclosure parameters of 100 conventional banks and 92 Islamic banks.
We found empirical evidence that the quantity and quality Web based CSRD had no significant impact on the Cash holdings of both type of banks. This implies that there are other factors other than the CSRD factors that dictate the level of the cash holdings that banks would preserve.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Adams, C.A., Frost, G.R.: The Development of the Corporate Website and Implications for Ethical, Social and Environmental Reporting through these Media. The Institute of Chartered Accountants of Scotland, Edinburgh (2004)
Alotaibi, O.K., Hussainey, K.: Determinants of CSR disclosure quantity and quality: evidence from non-financial listed firms in Saudi Arabia. Int. J. Discl. Gov. 13(4), 364–393 (2016). https://doi.org/10.1057/jdg.2016.2
Augusto, L.: Corporate social responsibility in Portuguese companies: Online communication practices. In: Corporate Social Responsibility and Corporate Governance, vol. 11, pp. 157–183. Emerald Publishing Limited (2017)
Beest, F.V., Braam, G.J.M., Boelens, S.: Quality of financial reporting: measuring qualitative characteristics (2009)
Bolivar, P.M.R.: Evaluating corporate social and environmental reporting on the internet: the utilities and resource industries in Spain. Bus. Soc. 48(2), 179–205 (2009)
Cheung, Y., Jiang, P., Tan, W.A.: Transparency disclosure index measuring disclosures: Chinese listed companies. J. Account. Public Policy 29(3), 259–280 (2010)
Daft, R., Lengel, R.: Information richness: a new approach to managerial behaviour and organization design. Res. Organ. Behav. 6, 191e233 (1984)
Daft, R., Lengel, R.: Organizational information requirements, media richness and structural design. Manag. Sci. 32(5), 554e571 (1986)
Das, S.: An investigation of corporate internet reporting in an emerging economy: a case study of Bangladesh, Doctoral thesis, University of Sunderland (2015)
Ellili, N., Nobanee, H.: Corporate risk disclosure of Islamic and conventional banks. Banks Bank Syst. 12(3), 247–256 (2017)
FASB: Business reporting research project: electronic distribution of business reporting information. Steering Committee Report Series, Financial Accounting Standards Board (2000)
Fisher, R., Oyelere, P., Laswad, F.: Corporate reporting on the Internet: audit issues and content analysis of practices. Manag. Audit. J. 19(3), 412–439 (2004)
Freedman, M., Stagliano, A.J.: Environmental disclosures: electric utilities and Phase 2 of the Clean Air Act. Crit. Perspect. Account. 19(4), 466–486 (2008)
Gray, R., Javad, M., Power, D.M., Sinclair, C.D.: Social and environmental disclosure and corporate characteristics: a research note and extension. J. Bus. Finance Acc. 28(3–4), 327–356 (2001)
Hąbek, P., Wolniak, R.: Assessing the quality of corporate social responsibility reports: the case of reporting practices in selected European Union member states. Qual. Quant. 50, 399–420 (2016). https://doi.org/10.1007/s11135-014-0155-z
Herzig, C., Godemann, J.: Internet-supported sustainability reporting: developments in Germany. Manag. Res. Rev. 33(11), 1064–1082 (2010)
Khan, M., Hassan, A., Harrison, C., Tarbert, H.: CSR reporting: a review of research and agenda for future research. Manag. Res. Rev. 43(11) (2020)
Leitoniene, S., Sapkauskiene, A.: Quality of corporate social responsibility information. In: 20th International Scientific Conference Economics and Management - 2015 (ICEM-2015) (2015)
Lodhia, S.: Web based social and environmental communication in the Australian minerals industry: an application of media richness framework. J. Clean. Prod. 25, 73–85 (2012). https://doi.org/10.1016/j.jclepro.2011.11.040
Mokhtar, E.S., Mellett, H.: Competition, corporate governance, ownership structure and risk reporting. Manag. Audit. J. 28(9), 838–865 (2013)
Moir, L.: What do we mean by corporate social responsibility? Corp. Gov. 1(2), 16–22 (2001)
Momany, M., Al-Shorman, S.: Web-based voluntary financial reporting of Jordanian companies. Int. Rev. Bus. Res. Pap. 2(2), 127–139 (2006)
Neuendorf, K.A.: The Content Analysis Guidebook, 1st edn., p. 301. Sage Publications, London (2002)
Saleh, A., Roberts, C.: The impact of online corporate reporting quality on analyst following and properties of their EPS forecasts. Account. Manag. Inf. Syst. 16(1), 59–88 (2017)
Salehi, M., Abdipour, A.: A study of the barriers of implementation of accounting information system: case of listed companies on Tehran stock exchange. J. Econ. Behav. Stud. 2(2), 76–85 (2011)
Wheeler, D., Elkington, J.: The end of the corporate social and environmental report? Or the advent of cybernetic sustainability reporting and communication. Bus. Strategy Environ. 10, 1–14 (2001)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Appendix
Variable | Symbol | Measurement |
|---|---|---|
Web-based CSRD Quantity | CSRD_QUAN | Quantity disclosure Index 0 = absence 1 = Existing |
Web-based CSRD Quality | CSRD_QUAL | Quality disclosure Index 1 = Not disclosed, no discussion of these issues 2 = Insufficient disclosure of these issues (minimal coverage, little detail, or briefly mentioned) 3 = A moderate disclosure of the bank’s performance in such areas 4 = A very good disclosure of the bank’s performance in such areas 5 = Extremely comprehensive and detailed disclosure of the bank’s performance in such areas (more than above) |
Control variables | ||
Bank Size | B_SIZE | Total assets in million Dollars |
Profitability (Accounting profits measures) | ROA | Return on assets ROA (%) |
Profitability (Accounting profits measures) | ROE | ROE (%) |
Audit firm Size | A_SIZE | Dummy variable 1 if the auditor is one of the Big 4 auditing firms and 0 otherwise |
GDP Value | V_GDP | GDP Most Recent Value (USD Millions) |
Inflation Rate | INFL | Inflation Rate % Reference 2023 (%) |
GDP Growth | GDP_GROW | GDP Annual Growth Rate (%) |
Interest Rate % | I_RATE | Interest Rate (%) |
Corporate Cash Holdings | CASH_H | The ratio of cash and cash equivalent over total assets |
Islamic Bank | ISLAMIC | Dummy variable 1 if the Bank in Non-Islamic and 0 otherwise |
Moderate variables | ||
ISO (14001–26000) | ISO | Dummy variable 1 if the Bank have ISO 14001 or ISO 26000 certificate and 0 otherwise |
Web-based CSRD Quantity | CSRD_QUAN | Quantity disclosure Index 0 = absence 1 = Existing |
Web-based CSRD Quality | CSRD_QUAL | Quality disclosure Index 1 = Not disclosed, no discussion of these issues 2 = Insufficient disclosure of these issues (minimal coverage, little detail, or briefly mentioned) 3 = A moderate disclosure of the bank’s performance in such areas 4 = A very good disclosure of the bank’s performance in such areas 5 = Extremely comprehensive and detailed disclosure of the bank’s performance in such areas (more than above) |
Control variables | ||
Bank Size | B_SIZE | Total assets in million Dollars |
Profitability (Accounting profits measures) | ROA | Return on assets ROA (%) |
Profitability (Accounting profits measures) | ROE | ROE (%) |
Audit firm Size | A_SIZE | Dummy variable 1 if the auditor is one of the Big 4 auditing firms and 0 otherwise |
GDP Value | V_GDP | GDP Most Recent Value (USD Millions) |
Inflation Rate | INFL | Inflation Rate % Reference 2023 (%) |
GDP Growth | GDP_GROW | GDP Annual Growth Rate (%) |
Interest Rate % | I_RATE | Interest Rate (%) |
Corporate Cash Holdings | CASH_H | The ratio of cash and cash equivalent over total assets |
Islamic Bank | ISLAMIC | Dummy variable 1 if the Bank in Non-Islamic and 0 otherwise |
Moderate variables | ||
ISO (26000) | ISO 26000 | Dummy variable 1 if the Bank have ISO 26000 certificate and 0 otherwise |
ISO (14001) | ISO 14001 | Dummy variable 1 if the Bank have ISO 14001 certificate and 0 otherwise |
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Kotb, E., EL Fakir, A., Russo, A. (2024). Sustainability and WEB-BASED Corporate Social Responsibility Disclosure: Could Machine Learning Models Explain the Impact on Bank’s Cash Holding. In: Ezziyyani, M., Kacprzyk, J., Balas, V.E. (eds) International Conference on Advanced Intelligent Systems for Sustainable Development (AI2SD'2023). AI2SD 2023. Lecture Notes in Networks and Systems, vol 931. Springer, Cham. https://doi.org/10.1007/978-3-031-54288-6_6
Download citation
DOI: https://doi.org/10.1007/978-3-031-54288-6_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-54287-9
Online ISBN: 978-3-031-54288-6
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)