The Impact of Ethical Leadership in the Relationship between the Disclosure of Social Responsibility and Financial Performance in Jordanian Public Shareholding Industrial Companies

Abstract

This study aimed to identify the impact of ethical leadership in the relationship between the disclosure of social responsibility and financial performance in Jordanian Public Shareholding industrial companies. The study population consisted of all of the (53) Jordanian Public Shareholding industrial companies listed in Amman Stock Exchange. To achieve the objectives of the study, a questionnaire was developed and distributed to (237) financial managers, heads of accounting departments, internal control managers, and internal auditors in these companies. As (181) questionnaires were retrieved, (169) of them were valid for analysis. In order to test the hypotheses, the structural equation model (PLS-SEM) was used. The study reached a number of results the most important of which is that ethical leadership has a positive impact on the relationship between disclosure of social responsibility and financial performance in Jordanian Public Shareholding industrial companies. Based on the results of this study, the researchers recommended many recommendations, the most important of which are: increasing the direction of the Jordanian Public Shareholding industrial companies by promoting disclosure of the social responsibility activities for environmental protection, as well as the necessity for the companies’ management to maintain positive relations with their subordinates and all employees. Additionally, the researchers recommend that the managements of these companies increase employee motivation and participation in order to improve the performance and productivity that they seek. Moreover, the researchers recommend conducting more studies on the impact of ethical leadership on the relationship between the disclosure of social responsibility and financial performance in other sectors and comparing their results with those in this study.