The Effect of CEO Confidence on Corporate Social Responsibility; With Role of Moderating of Institutional Ownership in Firms Listed in Tehran Stock Exchange

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Payame Noor University (PNU), Tehran, Iran

2 Master student of Accounting , Zand Shiraz Higher Education Institute, Shiraz, Iran

Abstract

Corporate social responsibility is very important and has strategic consequences in companies. Large companies invest in corporate social responsibility activities in important capital markets such as the stock market. Nowadays, CSR has become increasingly significant for a wide range of organizations and for the managers that work within them. Thus, this research aims to describe the effect CEO confidence on corporate social responsibility; with role of moderating of institutional ownership in firms listed in Tehran Stock Exchange. This study is applied research and quasi-experimental nature, and the method employed is an ex-post facto design in which the effects of CEO confidence on corporate social responsibility; with role of moderating of institutional ownership in firms has been investigated. To this end, two hypotheses were defined in the study. In order to test the hypotheses of the study, the statistical measure of Multivariate Linear Regression Analysis has been employed. The type of data utilized to test the respective research hypotheses was panel data.  Sample of the study was included 93 firms listed in Tehran Stock Exchange whose data were investigated over years 2006 to 2015. According to the results of the study, CEO confidence has an effect on corporate social responsibility. Also, institutional ownership as a moderating variable, has an effect on the intensity of relationship between CEO confidence and corporate social responsibility. Senior executive managers (CEO) who are overconfident, invest less in corporate social responsibility activities.

Keywords

References

اقدامی، اسماعیل، مشکی میاوقی، مهدی، کرد رستمی، سهراب، خردیار، سینا. (1399). بررسی رابطه بین مسئولیت اجتماعی و نگه‎داشت وجه نقد با تاکید بر نقش واسطه‌ای عوامل ریسک سیستماتیک و حاکمیت شرکتی. دانش حسابداری و حسابرسی مدیریت، 9(34)، 35-45.
پیرمرادی، فاطمه. (1393). تأثیر بیش اعتمادی مدیریت بر کیفیت سود ﺷﺮﻛﺘﻬﺎی ﭘﺬﻳﺮﻓﺘﻪ ﺷﺪه در ﺑﻮرس اوراق ﺑﻬﺎدار تهران، پایان‏نامه کارشناسی ارشد، دانشگاه آزاد اسلامی علوم تحقیقات سیرجان.
حجازی، رضوان، رجب دری، حسین. (1399). رابطه افشای اطلاعات مسئولیت‌پذیری اجتماعی شرکت و دقت پیش‌بینی مدیران. حسابداری و منافع اجتماعی، 10(4)، 73-92.
خوشکار، فرزین، زارعی لاچینی، جلال، ایوبی، موسی. (1398). بررسی رابطه مسئولیت اجتماعی با عملکرد مالی شرکت در شرکت های فعال عرضه کننده محصولات بهداشتی. فصلنامه علمی تخصصی رویکردهای پژوهشی نوین در مدیریت و حسابداری، 3(24)، 69-86.
 دستگیر، محسن، کاکایی‌دهکردی، مجتبی. (1394). رابطه بین اعتماد به نفس بیش از حد مدیر عامل و تجدید ارائه صورت‌های مالی در شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران.  بررسی‌های حسابداری، 2(7)، 47-66.
رﻫﻨﻤﺎی رودﭘﺸﺘﯽ، ﻓﺮﯾﺪون، زﻧﺪﯾﻪ، وﺣﯿﺪ. (1391).  ﻣﺎﻟﯽ رﻓﺘﺎری و ﻣﺎﻟﯽ ﻋﺼﺒﯽ (ﭘﺎراداﯾﻢ ﻧﻮﯾﻦ ﻣﺎﻟﯽ) از ﺗﺌﻮری ﺗﺎ ﻋﻤﻞ، داﻧﺸﮕﺎه آزاد اﺳﻼﻣﯽ: ﺳﺎزﻣﺎن ﭼﺎپ و اﻧﺘﺸﺎرات.
صالحی، اله‌کرم. (1399). تاثیر مالکیت نهادی بر شاخص‌های ارزیابی عملکرد مبتنی بر اجزای سود باقیمانده و بازار. دانش مالی تحلیل اوراق بهادار، 13(46)، 1-14.
فغانی ماکرانی، خسرو، حیدری رستمی، کرامت‏اله، امین، وحید. (1395). بررسی رابطه میان مسئولیت‏پذیری اجتماعی و ریسک کاهش قیمت سهام در شرکت‏های پذیرفته شده در بورس اوراق بهادار تهران، دانش سرمایه‏گذاری، 5(19)، 269-284.
محمودآبادی، حمید، ایمان‏روی، زهرا. (۱۳۹۵). بررسی تأثیر مسئولیت اجتماعی شرکت‏‏ها و عملکرد‏ مالی بر چسبندگی هزینه در شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران. پایان‏نامه کارشناسی ارشد، مؤسسه آموزش عالی زند شیراز.
نصیری پوردری، سلاله، بنی مهد، بهمن، احمدزاده، حمید. (1395). بیش اعتمادی مدیر و بیش نمایی سود. حسابداری مدیریت، 9(30)، 55-65.
Ben-David, I., Graham, J. R., & Harvey, C. R. (2013). Managerial miscalibration. The Quarterly journal of economics, 128(4), 1547-1584.
Byun, S. K., & Oh, J. M. (2018). Local corporate social responsibility, media coverage, and shareholder value. Journal of Banking & Finance, 87, 68-86.‏
Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Academy of management Review, 32(3), 946-967.‏
Campbell, T. C., Gallmeyer, M., Johnson, S. A., Rutherford, J., & Stanley, B. W. (2011). CEO optimism and forced turnover. Journal of Financial Economics, 101(3), 695-712.‏
Campello, M., Lin, C., Ma, Y., & Zou, H. (2011). The real and financial implications of corporate hedging. The journal of finance, 66(5), 1615-1647.‏
Chin, M. K., Hambrick, D. C., & Treviño, L. K. (2013). Political ideologies of CEOs: The influence of executives’ values on corporate social responsibility. Administrative Science Quarterly, 58(2), 197-232.‏
Cheung, A. (2016). Corporate social responsibility and corporate cash holdings. Journal of Corporate Finance.‏
Dastgir, M., Kakaii Dehkordi, M. (2015). The Relationship between CEO Overconfidence and Restated Financial Statements of Listed Companies in Tehran Stock Exchange. Journal of Iranian Accounting Review, 2(7), 47-66. [In Persian]
Deshmukh, S., Goel, A. M., & Howe, K. M. (2013). CEO overconfidence and dividend policy. Journal of Financial Intermediation, 22(3), 440-463.‏
Dick, M., Wagner, E., & Pernsteiner, H. (2021). Founder-controlled family firms, overconfidence, and corporate social responsibility engagement: Evidence from survey data. Family Business Review, 34(1), 71-92.‏
Eghdami, E., Meshki, M., Kordrostami, S., Kheradyar, S. (2020). Investigating the Relationship between Social Responsibility and Cash Holdings with Emphasis on the Mediating Roles of Systematic Risk Factors and Corporate Governance. Journal of Management Accounting and Auditing Knowledge, 9(34), 35-45. [In Persian]
Fabrizi, M., Mallin, C., & Michelon, G. (2014). The role of CEO’s personal incentives in driving corporate social responsibility. Journal of Business Ethics, 124(2), 311-326.‏
Faghani Makarani, K., Heydari Rostami, K., Amin, V. (2016). Economic Analysis of the Possibility of a Tax on Bank Deposits. Journal of Investment Knowledge, 5(19), 269-284.  [In Persian]
Hamidi, E., Nikkar, J., & Hashemi Tilehnouei, M. (2021). The Impact of Corporate Social Responsibility on the Managers' Behaviors in Companies Listed on the Tehran Stock Exchange. Iranian Journal of Finance, 5(2), 128-151.‏
Hejazi, R., Rajabdorri, H. (2020). The Relationship between Disclosure of Social Responsibility Information and accuracy of managers Forecast. Journal of Accounting and Social Interests, 10(4), 73-92.  [In Persian]
Heaton, J. B. (2005). Managerial optimism and corporate finance. In Advances in Behavioral Finance, Volume II (pp. 667-684). Princeton University Press.‏
Jiraporn, P., & Chintrakarn, P. (2013). How do powerful CEOs view corporate social responsibility (CSR)? An empirical note. Economics Letters, 119(3), 344-347.‏
Jiao, Y. (2010). Stakeholder welfare and firm value. Journal of Banking & Finance, 34(10), 2549-2561.‏
Khoshkar, F., Zarei Lachini, J., Ayoubi, M. (2020). Investigating the relationship between social responsibility and corporate financial performance in active companies supplying health products. Journal of New Research Approaches in Management and Accounting, 3 (24), 69-86. [In Persian]
Mahoney, L., & Roberts, R. W. (2007, September). Corporate social performance, financial performance and institutional ownership in Canadian firms. In Accounting forum (Vol. 31, No. 3, pp. 233-253). No longer published by Elsevier.‏
Malmendier, U., & Tate, G. (2005). CEO overconfidence and corporate investment. The journal of finance, 60(6), 2661-2700.‏ Malmendier, U., Tate, G., & Yan, J. (2011). Overconfidence and early‐life experiences: the effect of managerial traits on corporate financial policies. The Journal of finance, 66(5), 1687-1733.‏
Mahmoudabadi, H; Imanrooy, Z. (2016). Study of the effect of corporate social responsibility and financial performance on cost stickiness in companies listed on the Tehran Stock Exchange. Master Thesis, Zand Higher Education Institute, Shiraz. [In Persian]
McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of management review, 26(1), 117-127.‏
El Ghoul, S., Guedhami, O., Kwok, C. C., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital?. Journal of Banking & Finance, 35(9), 2388-2406.‏
McCarthy, S., Oliver, B., & Song, S. (2017). Corporate social responsibility and CEO confidence. Journal of Banking & Finance, 75, 280-291.‏
Mohammadi, S., Saeidi, H., & Naghshbandi, N. (2020). The impact of board and audit committee characteristics on corporate social responsibility: evidence from the Iranian stock exchange. International Journal of Productivity and Performance Management.‏
Monks, R., & Minow, N. (1995). Corporate Governance Blackwell. Cambridge, MA.‏
NasiriPour Dori, S., Banimahd, B., Ahmadzadeh, H. (2016). Managerial Overconfidence and Earnings Overstatement. Management Accounting, 9(30), 55-65. [In Persian]
Park, K. H., Byun, J., & Choi, P. M. S. (2020). Managerial overconfidence, corporate social responsibility activities, and financial constraints. Sustainability, 12(1), 61.‏
Petersen, H. L., & Vredenburg, H. (2009). Morals or economics? Institutional investor preferences for corporate social responsibility. Journal of Business Ethics, 90(1), 1-14.‏ Pirmoradi, F. (2014). The effect of management distrust on the quality of earnings in Tehran's securities, M.Sc. Thesis, Islamic Azad University of Sirjan Research Sciences. [In Persian]
Porter,  M.E.,  Kramer,  M.R.,  (2006).  Strategy  &  society:  the  link  between  competitive advantage  and  Corporate  Social  Responsibility.  Harvard  Business  Review,  84(12), 78–92.
Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal, 37(2), 262-279.‏
Rahnama‌ Roodposhti, F., Zandie, V. (2012). Behavioral finance and neurofinance (the new paradigm in finance) bridging the gap between theory and practice, Islamic Azad university: Printing and Publishing Organization. [In Persian]
Salehi, A. (2020). The effect of institutional ownership on performance measurement indicators based on residual income and market components. Financial Knowledge of Securities Analysis, 13(46), 1-14. [In Persian]
Salehi, M., Naeini, A. A. A., & Rouhi, S. (2020). The relationship between managers' narcissism and overconfidence on corporate risk-taking. The TQM Journal.‏
Sundaramurthy, C., Rhoades, D. L., & Rechner, P. L. (2005). A meta-analysis of the effects of executive and institutional ownership on firm performance. Journal of Managerial Issues, 494-510.‏
Schaefer, P. S., Williams, C. C., Goodie, A. S., & Campbell, W. K. (2004). Overconfidence and the big five. Journal of research in Personality, 38(5), 473-480.‏
Vogel, D. (2007). The market for virtue: The potential and limits of corporate social responsibility. Brookings Institution Press.‏ Wahba, H. (2010). How do institutional shareholders manipulate corporate environmental strategy to protect their equity value? A study of the adoption of ISO 14001 by Egyptian firms. Business
 

Files

History

  • Receive Date: 26 May 2021
  • Revise Date: 06 December 2021
  • Accept Date: 16 November 2021

Share

How to cite

Statistics