80 among all variables which indicate that there is

that correlations are relatively low (less than 0.80) among all variables which indicate that there
is no multi-collinearity problem.
An additional check for multi – collinearity was performed by calculating the Variance
Inflation Factor (VIF) after each regression model. Earlier research has stipulated that if the
VIF value is more than 10, then there is certain to be a multi-collinearity problem. The mean
and maximum values of the VIF investigations were formulated with the regression results to
show that there is no need to be concerned with this problem (Field, 2009).
Table 3 shows that CSR disclosure quantity is positively correlated with market
capitalization at 0.371 (5% significance level). However, there is no correlation between CSR
disclosure quantity and the other measurements. It provides evidence that CSR disclosure
quantity is statistically correlated positively with some corporate governance variables such as
BSZE at 0.182 (10% significance level), CEO duality at 0.191 (10% significance level),
ACSZE at 0.173 (10% significance level), and correlated positively and negatively with firm
characteristics, such as dividends paid at 0.287 (5% significance level) and CAPEXAST at -
0.187 (10% significance level).
In addition, the CSR disclosure quality is associated positively with market
capitalization at 0.305 (5% significance level). However, there is no correlation with the two
other measurements. Table 3 shows that it is correlated with one variable of corporate
governance, such as managerial ownership at 0.199 (5% significance level), and with firm
characteristics, such as dividends paid at 0.338 (5% significance level).
Moreover, the Pearson correlation matrix indicates a significant association between
CSR disclosure quantity and quality with some firm characteristic variables. This study finds

13
that there is a positive relationship between CSR disclosure quantity and quality and both are
significantly correlated with dividends paid at 0.287 and 0.338, respectively (5% significance
level).
This result is consistent with prior research, such as Elliott, Jackson, Peecher and White
(2014), who show that CSR disclosure is negatively associated with firm value. According to
Klein et al. (2005), firm value rises with greater corporate governance disclosure, thus we
suppose that voluntary disclosure has a positive impact on the firm value. Previous studies
(Sheu et al., 2010; Gordon et al., 2010) pointed out that voluntary disclosure has an impact on
firm value based on the signalling theory. Consequently, more disclosure signals give a better
governance mechanism and reduce agency conflicts.

14
Table 3 : Pearson Correlation Matrix
CSR Quan
CSR Qual
Log TQ
Log
Capitalization
ROA
BSZE
INDTO
GOVWN
MANOW
CEOD BMET
ACSZE
REMCOSZE
LIQ
LEV
DIVI
ASTGTH
CAPEXAST
CSR Quan
1 0.668** 0.037 0.371** 0.118 0.182* 0.001 0.079 0.021 0.191* 0.063 0.173* 0.000 -0.008 -0.095 0.287*
*
-0.048 -0.187*
0.000 0.630 0.000 0.123 0.017 0.991 0.301 0.788 0.012 0.414 0.024 0.996 0.914 0.216 0.000 0.536 0.014
CSR Qual
1 0.054 0.305** 0.024 0.092 -0.098 0.096 0.199
**
0.108 -0.029 0.142 0.071 0.036 -0.080 0.338*
*
0.054 -0.127
0.486 0.000 0.756 0.232 0.203 0.209 0.009 0.159 0.704 0.064 0.357 0.639 0.296 0.000 0.481 0.097
Log TQ
1 0.009 0.553
**
-0.148 -0.065 -0.105 0.210
**
0.095 -0.040 -0.047 0.031 0.195*
*
-0.522** -0.015 0.145 0.245**
0.910 0.000 0.053 0.401 0.172 0.006 0.214 0.606 0.540 0.684 0.011 0.000 0.851 0.058 0.001
Log
Capitalizati
on
1 0.284
**
0.371*
*
-0.099 0.426** 0.026 0.116 0.177* 0.304*
*
0.272*
*
0.030 0.183 0.562 -0.014 -0.016
0.000 0.000 0.200 0.000 0.734 0.131 0.021 0.000 0.000 0.694 0.017 0.000 0.854 0.831
ROA
1 0.157* 0.060 -0.165* 0.130 0.173* 0.010 -0.016 0.089 0.271*
*
-0.362** 0.114 0.109 0.197**
0.041 0.438 0.031 0.089 0.023 0.897 0.840 0.248 0.000 0.000 0.137 0.157 0.010
BSZE
1 0.352*
*
0.089 -0.020 0.049 0.047 0.165* 0.286*
*
-0.004 0.081 0.088 0.004 -0.129