Corporate social responsibility and financial accounting concepts: evidence from an emerging market

Abstract

Purpose

The purpose of this study is to investigate the effect of corporate social responsibility (CSR) on financial accounting concepts (including the stock return, real earnings management, information asymmetry and financial performance) in Iranian companies listed in stock exchanges.

Design/methodology/approach

This is descriptive-correlational and applied research. The statistical population of this research is all companies listed on Tehran Stock Exchange, and the research period is from 2012 to 2018. Using the screening method a sample of 150 companies was selected. Multivariate regression and the software Eviews 10 were used for data analysis and hypothesis testing.

Findings

The results indicated that CSR has a significant effect on stock return; however, it does not have a significant effect on real earnings management. CSR has a significant effect on information asymmetry and financial performance.

Originality/value

The present study is the first research conducted on CSR and financial concepts in Iran. The results of this study contribute to the literature by introducing social responsibility to financial accounting variables and provide suggestions for capital market participants. Social responsibility has received growing attention from many companies and managers, as it influences the interests of indirect stakeholders in addition to direct ones. CSR reporting can enhance the development of scientific and cultural skills by promoting a culture of knowledge acquisition and knowledge creation, leading to a reduced gap between the expectations of economic enterprises and the community.

Citation

Mohammadi, S. and Saeidi, H. (2022), "Corporate social responsibility and financial accounting concepts: evidence from an emerging market", Sustainability Accounting, Management and Policy Journal, Vol. 13 No. 3, pp. 740-764. https://doi.org/10.1108/SAMPJ-10-2019-0364