The impact of profitability and liquidity on social responsibility disclosure An applied study on Saudi Islamic banks

Abstract

The aim of the research is to show the effect of profitability and liquidity on the disclosure of social responsibility in Saudi Islamic banks, and to achieve the objectives of the research, the two researchers used the descriptive and analytical method. Approach by collecting data through financial reports from 2015 to 2019. Using content analysis, profitability was measured by (ROA), (ROE), and circulation ratio measurement of liquidity, While the two researchers built an index to measure the disclosure of social responsibility in this research, where the index included 15 elements of the disclosure of social responsibility, and a simple linear regression coefficient and a multiple linear regression were used to test the validity of assumptions and access to the relevant statistical indications.

The research concluded that there was an effect of profitability on the disclosure of social responsibility in Saudi Islamic banks, the research deals with only two characteristics of companies' characteristics, which are profitability and liquidity. We recommend researching the extent of the relationship of corporate characteristics with the disclosure of social responsibility and expanding the research sample.