Objective: This study examines the effect of firm-specific characteristics on the extent of Corporate Social Responsibility Disclosure (CSRD) among firms listed on the Palestine Exchange (PEX). It focuses on the roles of firm size, profitability, liquidity, age, and leverage within a politically and economically constrained environment.

Methodology: The study employs a quantitative approach using panel data from 43 listed firms over the period 2018–2022. CSRD is measured through content analysis of annual reports using a checklist-based disclosure index. Legitimacy theory serves as the primary theoretical framework, supported by stakeholder, agency, and signaling theories. Empirical analysis is conducted using pooled Ordinary Least Squares (OLS) regression with fixed effects. Robustness checks are performed using an alternative quality-based disclosure measure and theme-specific analyses.

Findings: The results reveal that firm size and profitability have a positive and statistically significant impact on CSRD levels. In contrast, firm age, liquidity, and financial leverage do not show significant associations with CSR disclosure. The robustness analyses confirm the consistency of these findings.

Implications: The findings offer valuable insights for policymakers, investors, and corporate managers by emphasizing the role of firm characteristics in shaping CSR transparency. Enhancing disclosure practices can strengthen stakeholder trust and accountability in developing markets.

Conclusions: This study contributes to the CSR disclosure literature by providing evidence from Palestine, an underexplored and institutionally fragile context. The results support legitimacy-based explanations of disclosure behavior and highlight the tendency of larger and more profitable firms to engage more extensively in CSR reporting.

Title

Al-Balqa Journal for Research and Studies

Publisher

جامعة عمان الاهلية

Publisher Country

Jordan

Publication Type

Both (Printed and Online)

Volume

28

Year

2025

Pages

18-39