The Impact of Accounting Disclosure of Corporate Social Responsibility on Financial Performance: A Field Study on Yemeni Cement Companies in Lahj and Abyan Governorates

Abstract

This study aimed to identify the accounting disclosure of corporate social responsibility (CSR) across its dimensions (environment, employees, community, customers, and product improvement) and its impact on financial performance indicators (profitability, financial leverage, and market value) in cement companies (National Company & Unity Company) within the Lahj and Abyan Governorates, Yemen. To achieve the study’s objectives and test its hypotheses, a descriptive-analytical approach was adopted. A questionnaire was distributed to all members of the study population, totaling 116 respondents, using a comprehensive census method. Statistical methods, such as measures of dispersion, correlation, regression, and Structural Equation Modeling (SEM), were utilized to analyze the data using statistical software (SPSS v28 and Smart PLS v4.08.6). The study results revealed that there is a statistically significant impact of accounting disclosure of CSR dimensions on financial performance indicators (profitability, financial leverage, and market value). The study recommends paying greater attention to disclosing environment-related activities, enhancing transparency in the dimensions that are less influential, addressing shortcomings in dimensions with weak impacts, and strengthening the role of cement companies in supporting the community and improving product quality.