Investor Sentiment for Corporate Social Responsibilities

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Faculty Economic Sciences and Finance, Lorestan University, Khoram Abad, Iran.

2 MSc Student. Department of Accounting, Khorram Abad, Lorestan University, Iran,

Abstract

Objective: In this study, the aim is to investigate the effect of investors' Sentiments on the social responsibility performance of companies listed on the Tehran Stock Exchange. Therefore, it tries to examine and evaluate how companies react to these Sentiment s and decide on the level of social responsibility resulting from companies' private information.
Method: For this purpose, data related to 120 companies listed on the Tehran Stock Exchange during the period 2009 to 2020 were extracted and the combined data regression model was used to test the research hypotheses.
Results: The first hypothesis shows that investors' Sentiments have a significant effect on corporate social responsibility activities. According to the research results, it can be stated that the second hypothesis of the research has been confirmed. Also, the results show that firm valuation constraints do not have a significant effect on the relationship between investor sentiment and corporate social responsibility activities. According to the fourth hypothesis, the effect of investors' Sentiments on the social performance of the company is confirmed in terms of stock turnover, but this hypothesis is rejected in terms of stock premium.
Conclusion: The results of this study indicate that social responsibility activities lead to an impact on stock markets. In other words, after high emotional periods, socially responsible companies get lower returns. Therefore, as an important corporate strategy, disclosure of social responsibility is influenced by the sentiments of the investor.

Keywords

References

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History

  • Receive Date: 01 December 2021
  • Revise Date: 08 July 2022
  • Accept Date: 04 May 2022

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