Examining the Impact of Social Disclosures on the Profitability of Jordanian Commercial Banks: A Comprehensive Study

This study investigates the impact of social disclosures on the profitability of Jordanian commercial banks, focusing on the relationship between social disclosures related to employee activities, societal benefits, customer targeting, and financial performance indicators such as ROA, ROE, and EPS. Drawing upon existing literature on social disclosures, sustainability reporting, and CSR practices, the study adopts a quantitative research approach and collects data from financial reports and disclosure documents of all Jordanian commercial banks listed on the Amman Stock Exchange between 2017 and 2021. Regression analysis is employed to analyze the relationship, considering relevant variables. The findings reveal a significant influence of social disclosures on bank profitability, with a positive correlation between social disclosures and financial performance indicators. The study contributes to the literature by providing empirical evidence specific to Jordanian commercial banks, highlighting practical implications for banking institutions, policymakers, and regulators in integrating social disclosures to enhance financial performance and addressing the social implications of such disclosures. The study’s originality lies in its comprehensive inclusion of all Jordanian commercial banks and its robust methodology, filling a research gap and providing unique insights into this specific context.