أثر الإفصاح عن المسؤولية الاجتماعية على قرارات التمويل و الإقراض : دراسة ميدانية في المملكة العربية السعودية

Abstract EN

This study aims to gain insights on the role and impact of social responsibility disclosure on the financing and lending decisions taken by financial institutions either in the government or private sectors in the Kingdom of Saudi Arabia.

To achieve this aim, the analytical descriptive method has been employed.

A questionnaire has been created and randomly distributed to a sample of (127) credit decision makers in both government and private sectors.The study findings show that the financial government and private institutions rely on the social responsibility information when taking credit decisions (financing or lending decisions).

Moreover, the findings show that disclosure of social responsibility information impacts the credit-granting decisions as it improves access to credit, enables the disclosing entity to obtain higher value financing, reduces the need for collaterals, reduces the costs of financing, and provides a higher maturity period.

The findings also show that there are no significant differences in the impact of social responsibility disclosures on the decisions of the financial institutions in either the government or the private sectors.In view of the study findings, several recommendations have been made.

First, it is recommended that the financial government and private institutions should identify the training needs of their credit personnel and provide regular training courses that aim to improve the skills of the credit decision makers.

It is also recommended to ascertain the availability of information to confirm that the borrowing entity has no associations with human rights violations.

It is also recommended to build upon information of the borrowing entities’ measures related to equity among employees before granting credit.

Finally, it is recommended to raise awareness of the borrowing entities about the benefits of social responsibility disclosure for both government and private financial institutions.