The role of ownership structure, board, and audit committee in corporate social responsibility disclosure: Jordanian evidence

Purpose This paper aims to explore the extent of corporate social responsibility disclosure (hereafter CSRD) in Jordan and also examine whether ownership structure, board of directors and audit committee characteristics influence CSRD. Design/methodology/approach The extent of CSRD is measured by constructing a CSRD index for industrial firms listed on the Amman Stock Exchange from 2016 to 2021. Panel regression analysis is used to examine the potential effect of ownership structure, board of directors and audit committee on the level of CSRD. Findings This study provides empirical evidence that diverse groups of shareholders have different effects on CSR engagement, and board characteristics (board size, board independence and gender diversity) play a vital role in increasing voluntary disclosure, including CSR information. There is no evidence to support that CSRD is influenced by audit committee characteristics. Practical implications This study recommends that corporate regulators and policymakers can improve CSRD practices by expanding the scope of existing disclosure requirements related to CSR and developing a structured CSRD index to measure the degree of CSRD practices for comparative purposes. Encourage firms to actively participate in social responsibility programs by granting tax incentives and government facilities to firms with the best CSR reports. Policymakers should introduce initiatives that support female’s representation on board. Finally, firms should restructure their boards by increasing board size and the percentage of independent directors to enhance their effectiveness to support CSRD. Originality/value This paper contributes further insights into the literature on CSRD practices and disclosure by analyzing data from developing market contexts.