4.3 Content Analysis and CSR Reporting Index The study employed content analysis for systematic categorization and analysis of the contents reported in the annual report. The quantity and nature of social reporting have been measured using content analysis (Holsti, 1969; Krippendorf, 1980). Hossain et al. (1994), Ahmed and Nicholls (1994), and Hossain (2000 and 2001), suggested a dichotomous procedure in which an item scores ‘1’, if reported and ‘0’ if not reported. Past experience shows that the use of weighted and un-weighted scores for the items reported in the corporate annual reports and calculation can make little or no difference to the findings (Coomba and Tayib, 1998). Thus, the study used this un- weighted reporting index methodology. So, the un-weighted reporting method measures the total disclosure (TD) score of a selected company (suggested by Cooke, 1992) as follows: TD = ∑ = n i di 1 Where, d = 1 if the item di is reported d = 0 if the item is not reported n = number of items. Downloaded by Macquarie University, MD SHIRAJUL ISLAM SAGAR At 06:08 28 August 2015 (PT)
4.4 Selection of CSR Items in the Reporting Index The present study developed a reporting index to evaluate the CSR reporting performance of the banking sector in Bangladesh. For development of reporting index, a list of expected CSR reporting items consisting of total 97 elements (list of elements provided in Appendix-2) has been developed through reviewing the literatures of Azim, Ahmed & D'Netto (2011), Masud (2011), Hossain (2008), Sairally (2007), Bayond, Kavanagh & Slaughter (2012), Abdullah et al., (2011) and others. The selected CSR reporting items were classified into seven categories for the purpose of better presentation and analysis: Human Resource, Consumer, Community, Health, Education, Environment and others. Number of items and their percentages under each category are provided in Table No. 2 (in appendix-1) . 4.5 Model Development The Ordinary Least Square (OLS) regression model is fitted to the data for assessing the effect of independent variables on total CSR reporting score. The regression model fitted for the study is: UDI = α +β 1 Log_TA + β 2 Log_TR + β 3 NOB + β 4 AGE + β 5 ROA + β 6 EPS + β 7 Log_CSR_Exp + β 8 CAR + e i Where, UDI = total CSR reporting score received for each bank α = Intercept of the function β = Coefficient (Slope of the regression line) SIZE = Total Asset, Total Revenue and No. of Branches AGE = Years of operation as a listed public limited company in DSE PT = Profitability is measured by ROA and EPS CSR_Exp = Corporate Social Responsibility Expenditure CAR = Capital Adequacy Ratio, measured by the Total Capital to Risk Weighted Assets e i = Standard sample error 4.7 Development of Hypotheses The following hypotheses were developed to examine the relationship between the extent of corporate social responsibility reporting in annual report and a number of bank characteristics.
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