The Moderating Role of Financial Statement Comparability in the Relationship Between Corporate Social Responsibility and the Performance of Companies Listed on the Iraqi Stock Exchange
Keywords:
Corporate social responsibility, company performance, comparabilityAbstract
Objective: The objective of this study is to examine the impact of corporate social responsibility (CSR) on firm performance and to analyze the moderating role of financial statement comparability in this relationship.
Methodology: This applied and correlational study employed panel data from 63 companies listed on the Iraq Stock Exchange between 2015 and 2022, selected using a purposive sampling method. CSR was measured using a 39-item checklist based on Carroll’s (1999) model, while firm performance was proxied by return on assets (ROA). Financial statement comparability was considered the moderating variable. Multiple regression analysis was applied, controlling for variables such as financial leverage, firm size, board independence, and audit quality.
Findings: The results revealed that CSR has a positive and significant effect on firm performance. Moreover, financial statement comparability significantly strengthens the CSR–performance relationship. In other words, higher levels of comparability enhance the positive impact of CSR on ROA.
Conclusion: This study confirms that CSR plays a vital role in improving firm performance, and that the quality of financial reporting, particularly comparability, reinforces this effect. Enhancing transparency and improving financial reporting standards can therefore serve as effective mechanisms for maximizing the benefits of CSR and building stakeholder trust.
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Copyright (c) 2025 Thaer Najm Kadhim Gharbawee, Saeid Aliahmadi, Haider Alwan Kadhom AlShameari, Afsaneh Soroushyar (Author)
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