Impact of applying social responsibility accounting on companies' financial performance

Ayat Karaja, Emad Al Shikh, Israa Mansour


This research aims to examine the impact of applying social responsibility accounting measured through (environment protection, community service, and human resources) on the financial performance of companies measured by Earning per Shear (EPS) and Return on Assets (ROA).

The study population consisted of service companies listed in Amman stock Exchange. To realize the research objectives, analytical descriptive approach was adopted. For testing hypotheses, Multiple Regression Analysis was used. Results showed that there is an application of social responsibility accounting of the selected activities by the Jordanian companies listed in listed in Amman stock Exchange. In addition, there was a statistically significant impact at the level of (α ≤ 0.05) for social responsibility accounting whether combined and separately on the financial performance being measured by the EPS and the return on assets in the service companies listed on the Amman Stock Exchange.

Among the recommendations was to increase the awareness of the companies 'administrations about the effects and implications of social activities due to their impact on their financial performance. Officials of the Amman Stock Exchange and other concerned parties have been urged to promote the supervision on companies' commitment to disclose their social activities and to encourage companies to follow the same approach.

Keywords: Social Responsibility Accounting, Financial Performance, Services Companies, Earning per Shear, return on Assets.

DOI: 10.7176/EJBM/11-15-17

Publication date:May 31st 2019

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