Investigating the Interactive Effect of Corporate Governance and Corporate Social Responsibility on the Firm Value in the Tehran Stock Exchange

Document Type: Research Paper

Authors

Department of Accounting and Finance, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran

Abstract

The purpose of this study is to investigate the effect of corporate governance (CG), corporate social responsibility (CSR) and their interactive effect on the value of companies listed on the Tehran Stock Exchange. For this purpose, the data of 194 companies listed on this stock exchange, which was selected using a systematic elimination method, from 2011-2017 were collected and analyzed using the pool data technique. This research is applied and is an analytical-explanatory study. The research findings showed that corporate governance, social responsibility, and the interactive effect of corporate governance and social responsibility have a direct effect on the company's value in all four models of capital asset pricing in the companies listed in the Tehran Stock Exchange. It was also shown in the comparison of models that the market-based, single-factor model explains the relationship between these variables better than other models discussed in this study.

Keywords

Main Subjects


Article Title [Persian]

بررسی اثر تعاملی حاکمیت شرکتی و مسئولیت اجتماعی بر ارزش شرکت در شرکت های پذیرفته شده در بورس اوراق بهادار تهران

Authors [Persian]

  • جمال برزگری خانقاه
  • حجت اله صادقی
  • مریم قدک فروشان
گروه حسابداری و مالی، دانشکدة اقتصاد، مدیریت و حسابداری، دانشگاه یزد، یزد، ایران
Abstract [Persian]

هدف از انجام این پژوهش بررسی اثر حاکمیت شرکتی و مسئولیت اجتماعی و همچنین اثر تعاملی آنها بر ارزش شرکت در شرکت های پذیرفته شده در بورس اوراق بهادار تهران است. بدین منظور داده های 194 شرکت پذیرفته شده در بورس اوراق بهادار که با استفاده از روش حذف سیستماتیک انتخاب شدند، طی سال های 1390 الی 1396 جمع آوری گردید و با استفاده از تکنیک داده های تلفیقی تجزیه و تحلیل شد. این پژوهش کاربردی بوده و از نوع تحلیلی- تبیینی می‌باشد. یافته های پژوهش نشان دادند که حاکمیت شرکتی، مسئولیت اجتماعی و اثرتعاملی حاکمیت شرکتی و مسئولیت اجتماعی بر ارزش شرکت در هر چهار مدل قیمت گذاری دارایی های سرمایه ای در شرکت های پذیرفته شده در بورس اوراق بهادار تهران اثر معنادار و مستقیم دارند. همچنین در مقایسه مدل ها نشان داده شد که مدل تک عاملی بازار رابطه بین این متغیرها را بهتر از سایر مدل های این پژوهش توضیح می دهد.

Keywords [Persian]

  • حاکمیت شرکتی
  • مسئولیت اجتماعی
  • ارزش شرکت
  • مدل های قیمت گذاری دارایی های سرمایه ای
Akbari, M., Ghasemi Shams, M. & Houshmand, F. (2015). Adjustment effect of advertising intensity on the relationship between social responsibility and company value. Financial Management Strategy, 3(9), 127-146- (In Persian)

Asaadi, A. R. (2016). Corporate governance and performance of holdings companies and subsidiaries in Tehran Stock Exchange. Financial Management Strategy, 4(4), 129-151. (In Persian)

Azizul Islam, M. (2009). Social and environmental reporting practices organizations operating in or sourcing products from a developing country: Evidence from Bangladesh. University ofDhaka, Dhaka Bangladesh.

Bhullar, P.S., Bhatnagar, D. & Gupta, P. (2018). Impact of buyback of shares on firm value: An empirical evidence from India. Iranian Journal of Management Studies, 11(3), 425-436.

Corporate Governance Letter. (2007). Tehran Stock Exchange.

Crane, A., Matten, D., Spence, L. (2008). Corporate social responsibility: In global context. In Corporate Social Responsibility: Readings and Cases in Global Context. Routledge, London, 3–20.

Crisóstomo, V. L., Souza Freire, F. D., &  Vasconcellos, F. C. D. (2011). Corporate social responsibility, firm value and financial performance in Brazil. Social Responsibility Journal, 7(2), 295-309.

Daneshvar, F. (2016). Social responsibility to prevent economic crises. Internet Magazine of the Copper Age, Code: 10526. (In Persian)

Darabi, R., Waqafi, S. H., & Salmanian, M. (2016). Investigating the relationship between corporate social responsibility report and values ​​and risk of accepted companies in Tehran Stock Exchange. Quarterly Journal of Value and Behavioral Accounting, 1(2), 193-213. (In Persian)

Dimitripoulos, D. P., & Varondo, O. (2015). Corporate social responsibility and firm value in the sport recreation sector: A review. Business Management and Strategy, 6(2), 28-43.

Eghtedari, S. (2017). Disclosure of corporate social responsibility and corporate value: Family ownership versus non-family. Master's Thesis, Marvdasht Islamic Azad University, Marvdasht, Iran. (In Persian)

Faghani Makerani, Kh., Heydari Rostami, K., & Amin, V.. (2016). Investigating the relationship between social responsibility and the risk of reducing stock prices in Tehran Stock Exchange. Journal of Investment Knowledge, 5(19), 269-283.

Fakhari, H., Rezaei Pithenoei, Y., & Norouzi, M. (2016). The impact of corporate social responsibility disclosure on investment efficiency. Journal of Financial Strategies, 15, 85-106.

Hajihah, Z., & Sarafraz, B. (2014). Investigating the relationship between corporate social responsibility and equity costs in companies accepted at Tehran Stock Exchange. Empirical Accounting Research, 4(2), 105-123.

Hasas Yeganeh, Y. & Baghomian, R. (2005). Corporate governance and financial reporting quality. Official Accountant, Special Issue, 45-86. (In Persian)

Hasas Yeganeh, Y., & Barzegar, G. (2015). Theoretical foundations of corporate social responsibility and its research paradigm in accounting. Management Accounting, 7(22), 109-133.

Hezbi, H., & Salehi, A. K. (2016). Comparison of the explanation of the four-factor Carter Model and the five-factor Mmodel of Fama and French in the forecast of stock expected returns. Journal of Financial Engineering and Management of Securities, 28, 137-152.

Hosseini, S. A., & Haghighat, S. (2016). The relationship between corporate governance and commitment to social responsibility in companies acquired in Tehran Stock Exchange. Journal of Accounting Research, 6(4), 103-128. (In Persian)

Islami Bidgoli, G. R., Bajelan, S., & Mahmoudi, V. (2009). Valuation of valuation models in the stock exchange. Financial Research, 10(26), 21 - 40. (In Persian)

Jafarzadeh, M., & Zeinali, M. (2014). The impact of social responsibility on company value. Second National Conference on Management Dynamics, Economic Development and Financial Management, Shiraz, Pandar Andish Rahpo Co., Tehran, Iran. (In Persian)

Jahankhani A., & Parsayian, A. (2003). Financial Management (part 1). SAMT Publication: Tehran, Iran.

Jo, H., & Harjoto, M. A. (2011). Corporate governance and firm value: The impact of corporate social responsibility. Journal of Business Ethics103(3), 351–383.

Jorion, P., Shi, C., & Zhang, S. (2009). Tightening credit standards: The role of accounting quality. Rev Account Stud, 14(1), 60-123.

Khodadadi, V., & Taker, R. (2012). The effect of corporate governance structure on financial performance and value of accepted companies in Tehran Stock Exchange. Accounting and Audit Research, 15, 88-102. (In Persian)

Li, F., Li, T., & Minor, D. (2016). CEO power, corporate social responsibility, and firm value: A test of agency theory. International Journal of Managerial Finance, 12(5), 611-628.

Nesbitt, W. L., Outslay, E., & Persson, A. (2016). The Relation between tax risk and firm value: Evidence from the Luxembourg tax leaks.

Pazoki, S. (2015). The study of the relationship between corporate governance and the value of companies accepted in Tehran Stock Exchange during the global financial crisis. The 4th National Conference On Accounting, Financial Management and Investment, Azadshahr, Academic and Professional Association of Managers and Accountants in Golestan, Islamic Azad University, Azadshahr Branch, Azadshar, Iran. (In Persian)

Pourali, M. R., & Hejami, M. (2014). The relationship between disclosure of social responsibility and institutional ownership in companies accepted in Tehran Stock Exchange. Management, Accounting, and Audit Knowledge, 3(10), 135-150.

Pourheidari, O. & Koupaie, M. (2010). The prediction of the corporate financial crisis using the line-based separation function model. Journal of Financial Accounting Research, 2(1), 33-46. (In Persian)

Servaes, H.  &Tamayo, A. (2013). The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), 1045-106.

Shleifer A. & Vishny. R. (1997). A survey of corporate governance. Journal of Finance 52, 737-783

Singh, P. J., Sethuraman, K., & Lam, J. Y. (2017). Impact of corporate social responsibility dimensions on firm value: Some evidence from Hong Kong and China. Sustainability, 9(9), 1-24.

Tamizi, A. R. (2017). Investigating the relationship between liquidity, ownership concentration, corporate governance and company value, Master's Thesis, Ershad Damavand Institute of Higher Education. (In Persian)

Valipour, H., Rostami, V. & Shahabi, A. R. (2010). relevance of reported profit levels and components for company value estimation. Journal of Management Accounting, 3(7), 93-107. (In Persian).