A multidimensional analysis of CSR disclosure under economic and political instability

This study examines firm-level and governance factors associated with corporate social responsibility disclosure (CSRD) in Palestine, a politically and economically fragile context characterized by institutional weakness and limited regulatory enforcement. It examines the associations of firm characteristics, audit quality, and board-related governance mechanisms with the extent, quality, and thematic composition of CSR reporting. Panel data from 43 firms listed on the Palestine Exchange are analyzed using OLS with industry and year dummies as the baseline specification, complemented by dynamic System GMM as a robustness analysis. The study integrates stakeholder, legitimacy, agency, and resource-based theories within a multidimensional disclosure framework capturing both the scope and depth of CSR communication. Firm size, profitability, audit quality, the proportion of non-executive directors, gender diversity, and audit committee presence are positively associated with CSR disclosure, while other factors exhibit weaker or theme-specific effects. CSRD is associated with internal governance mechanisms within a context characterized by limited institutional enforcement. The findings may inform managerial and policy discussions concerning board diversity, audit oversight, accountability mechanisms, and the development of more consistent CSRD practices. This study provides a multidimensional, theory-driven analysis of CSRD in a politically unstable and underregulated environment, offering new evidence on CSRD practices within a context characterized by institutional fragility.