The effect of Quantitative Indicators corporate social responsibility on Financial and economic performance volatility in firms listed on Tehran Stock Exchange

Document Type : Research Paper

Authors

1 Faculty of Humanities, Islamic Azad University, Tehran East Branch

2 MSc, Faculty of Humanities, Islamic Azad University, Tehran East Branch, Tehran, Iran

Abstract

The aim of this study is to examine the effect of quantitative indicators of corporate social responsibility on financial and economic performance volatility in firms at Tehran Stock Exchange. By reviewing internal researchs related to corporate social responsibility and because of the importance of this area for developing economies to attract foreign investments, this study examined the impact of corporate social responsibility on financial and economic performance volatility in the financial reporting environment of Iran, by means of quantitative indicators extracted from the financial statements. For this purpose, ten hypotheses developed and data on 105 companies in Tehran Stock Exchange gathered and analyzed for the period between the years 2010 to 2017. The regression model using panel data with fixed effects approach was tested. The results showed that the ratio of the number of employees to total assets and the ratio of tax to total assets as indicators of corporate social responsibility would reduce the company's corporate financial and economic performance volatility. On the other hand, the results indicated that the ratio of fixed assets to total assets of the company, the ratio of the cost of R&D and advertising to sales and the ability of corporate governance as indicators of corporate social responsibility, have Insignificant effect on the company's corporate financial and economic performance volatility. Therefore, given the contradictory results obtained for the impact of corporate social responsibility on volatility of financial and economic performance, this area requires more research.

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References

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History

  • Receive Date: 16 August 2018
  • Revise Date: 27 October 2018
  • Accept Date: 03 December 2018

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