The Mediating Effect of Board Composition on the Impact of Ownership Structure on Corporate Social Responsibility: Evidence from Palestine Stock exchange and Amman stock exchange رسالة دكتوراة

Abstract

This research examines the relationship between ownership structure, board composition, and corporate social responsibility disclosure (CSRD) in firms listed on the Palestine Stock Exchange (PSE) and the Amman Stock Exchange (ASE). We focus on the growing global emphasis on corporate governance and social responsibility, particularly in developing economies where unique regulatory frameworks and market dynamics shape firm behavior. Drawing on agency theory, stakeholder theory, and legitimacy theory, we investigate how different ownership types—family, institutional, foreign, and state— affect CSR activities and how board composition mediates these effects. We collected data from annual reports of listed firms spanning 2010 to 2022 and used a quantitative methodology. We applied multiple regression analysis and structural equation modeling (SEM) to test four primary hypotheses. Our results show that firms with significant institutional and foreign ownership disclose higher levels of CSR, while family ownership produces mixed results. We also find that board composition— specifically independence, diversity, and expertise—plays a key role in driving CSR disclosure and mediates the relationship between ownership and CSR practices. These findings highlight that firms with well-structured boards are more likely to align ownership expectations with meaningful CSR engagement. Our research offers new insights into corporate governance in emerging markets and underscores the importance of aligning ownership and board characteristics to enhance CSR performance. We provide practical recommendations for policymakers and corporate leaders to strengthen governance frameworks by promoting board diversity, independence, and transparency. By focusing on Palestine and Jordan, this study fills a gap in the literature and delivers region-specific evidence relevant to other developing economies