1- Research problem and questions:
The study tries to level of accounting disclosure for social responsibility in the annual reports and the website of the banks in the Egyptian environment, analyze its determinants, and its impact (the quantity and quality of disclosure) on the performance and reputation of the banks, the researcher will formulate the problem of the study by asking the following questions:
A-What is the level of the accounting disclosure for social responsibility in the annual reports and the website of the banks? What are the determinants that affect it?
B -Is the quantity and quality of accounting disclosure for social responsibility affect the performance and reputation of the banks in the Egyptian environment?
C-what is the impact of accounting disclosure for social responsibility on the orientation of the users of the financial reports for banks and their investment decisions?
2- Research Objectives:
The main objective of the research is to identify the level of accounting disclosure for social responsibility in the annual reports and the website of the banks in the Egyptian environment, and to analyze its determinants, and its impact on performance and reputation. And emerge from this goal the following objectives,fromthis objective the following sub-objectives arise:
A- Measuring the level of accounting disclosure about social responsibility and analyzing the determinants influencing it.
B- Examining the impact of quantity and quality of accounting disclosure for social responsibility on the performance and reputation of banks.
C- Examining the impact of accounting disclosure for social responsibility on the orientations of users of financial reports and their investment decisions.
3- The Research importance:
The importance of research appears through the following:
First: the scientific importance:
a. The research is an extension of the accounting literature that the researcher to identify the level of accounting disclosure for social responsibility in the banks working in the Egyptian environment, which may provide indications about the quality and credibility of their published financial reports and their expression of their economic and social performance.
b. This study is concerned with the determinants of accounting disclosure practices for social responsibility and focus on its role in the interpretation of the level of variation between banks in the quality of disclosure of these practices, which is rare in the studies related to developing countries.
c. The study tries to build two models, one to test the impact of accounting disclosure for social responsibility on the banks performance (the first model), and the other is its impact on social reputation (second model) through the introduction of new variables to the models that have already been made by previous studies, which reflects new indicators to explain the relationship of social responsibility performance and reputation of banks.
Second, the practical importance:
a. The social responsibility still take voluntary and charitable work for many of the Egyptian banks, as there is no separate reports for the disclosure of social responsibility, which is demanded by many international professional organizations.
b. Assessing the level of accounting disclosure for social responsibility in the annual reports and the website of the banks provides a practical guide to the need to improve its quality, especially in light of the increasing competition between banks and considering it as one of the basic dimensions of its strategy.
c. The results of the study may provide important information for users of financial reports for banks, providing them with information on the level of its social practicing, the determinants affecting them, and the quality of accounting disclosure and the indicators affecting it, and the extent to which banks interfere with the philosophy of the community, and the degree of their participation in the achievement of sustainable development on another hand.
4- Research hypotheses:
A- Determinants of accounting disclosure about social responsibility affect the level of variation in its quality for the banks working in the Egyptian environment.
B- The quantity and quality of accounting disclosure about social responsibility affects positively the performance of banks in the Egyptian Environment.
C- The quantity and quality of accounting disclosure about social responsibility positively affect the bank's reputation in the Egyptian environmental.
D- The accounting disclosure about social responsibility of banks operating in the Egyptian environment affects the orientations of users of the financial reports and their investment decisions.
5- Research Methodology and model building:
The study is based on a content analysis method to examine the annual reports and the website of a number of (36) banks of the banks operating in the Egyptian environment during the period (2009 to 2013), so as to build two models to measure the impact, they consists of the accounting disclosure about the practices of corporate social responsibility (quantity and quality ofDisclosure) as the dependent variable and independent variables related to the performance of the bank (measured using accounting measures such as return on equity, return on assets), in addition to the bank's market performance (measured using a (Tobin's Q and the reputation of the bank has been measured using the Egyptian index of Corporate Responsibility) dependent variables; accompanied by some other variables affecting this relationship, the study is also based on a poll sample of users of the financial reports for banks operating in the Egyptian environment (investors and financial analysts), to measure the attitudes toward accounting disclosure about social responsibility and its impact on their investment decisions.
6- The Research plan:
The Research is divided as follows Section I: General framework of the research, Section II: Determinants of accounting disclosure for social responsibility in the banks working in the Egyptian, Section III: the relationship between the accounting disclosure and the social responsibility and the performance and reputation of the banks, Section IV: research methodology and the developing the hypotheses, Section V: the the research mythodology and the building of the model, Section VI the research design, Section VII: the applied study and testing the hypotheses and Section VIII: findings, recommendations and areas for future research.
7- Findings, recommendations and proposals for future
7.1 Results:
1. The low quality of accounting disclosure for social responsibility in the Egyptian banks which reflects the limited look at many of the banks that social responsibility is still a voluntary action offered by banks rather than a strategy to contribute to the improvement of the bank's performance and reputation in the long term for the community.
2. Determinants of accounting disclosure about social responsibility affect the level of variation in its quality as the results of the slope shoed a positive affect of significance for each of the bank's size and profitability and the extension of its activities and the quality of governance practices and the structure of ownership on the quality of accounting disclosure about social responsibility, while there was a negative affect with significance for the laverage degree which validates the first hypothesis.
3. The Accounting Disclosure for Social Responsibility (the quantity and quality of disclosure) positively affect the banks' performance (financial and logistical), as The performing of banks' social responsibility helps them attract new customers and investors and retain experienced staff, which will be reflected in the improvement of their performance in the long term, which validates The second hypothesis.
4. There is a positive relationship and statistically significant differences between the accounting disclosure about social responsibility and reputation of banks as the banks fulfillment of the requirements of accounting disclosure that is mentioned in the Egyptian index of Corporate Responsibility contribute to improving the transparency of its financial reporting, as well as improve its relationship with the community and other parties that have a direct relation with the banks, which validates the third hypothesis.
5. The Accounting Disclosure for Social Responsibility in the the Egyptian banks affects the orientations of financial reports users and their invenstmentdecisions, which proves the validity of the fourth hypothesis.
7/2 Recommendations:
1. The formation of committees for social responsibility within the bank boards to take up the preparation of the social responsibility of banks and strategic guidance to the accounting disclosure on sustainability, including reports on a regular basis helps to activate its role in achieving sustainable development.
2. Increasing awareness of the societal and institutional and NGOs in the Egyptian environment of the importance of accounting disclosure for Social Responsibility, where these groups represent the power of pressure on banks to force them to disclose social strategy and the common good.
3. The adoption of the Central Bank of Egypt and the General Authority for Financial Control mechanisms that would force the Egyptian banks to disclose the accounting information necessary to calculate the Egyptian index of social responsibility in order to encourage positive competition among banks in solving community issues, and to provide information to investors who want to invest their money in banks interested in social performance.
4. amend paragraph number (5) about Disclosure and transparency contained in the instructions and guidelines for banks Governance Committee (Basel) related to governance issued in October (2010) and paragraphs number (6.6.5), and (8-6-5), and ( 05.06.11) includedin the guiding rules and standards of corporate governance issued in March (2011) to include a more comprehensive description of the social practices of banks and how to disclose in a separate article that this articleshould be binding on all banks listed in the Egyptian capital market.
5. Issuing an Egyptian Accounting standard regulating accounting for social responsibility in terms of identifying fields and how they are measured and presented in financial reports with the importance of the trend to adopt a sustainability report or what is known as the trilateral report includes financial and non-financial information about the economic, environmental and social activities of banks.
6. Further Accounting Research, which provides further explanation on the impact of accounting disclosure for social responsibility on the performance and the value of the banks-especially in light of cultural and societal changes in the Egyptian environment after the revolution of January 25, 2011 through the use of other metrics such as market value relative to the book value (M / B), earnings per share (EPS), and value-added (VA)....
7/3 Future proposals:
The Researcher finds in the light of what has been reached from the results that there are many areas that can serve as a basis for future research, including the following:
1. The study of the relationship between the accounting Conservatism and social performance of the company.
2. Study the impact of the governance structure and strategy of social responsibility on the quality of sustainability reports.
3. Study the impact of accounting disclosure for social responsibility on the quality of businesses profits;performance and reputation of the banks
|
