The Role of Social Interest Rate Risk Management in the Relationship between Sustainability Performance and Investment Efficiency

Subject Areas : Financial Mathematics

Hamzeh Asgari Rashtiani ¹ , Fazel Mohammadi Nodeh ² , Sina Kheradyar ³ , Farzin Rezaei ⁴

1 - Department of Accounting , Qazvin Branch , Islamic Azad University, Qazvin , Iran
2 - Department of Management , Lahijan Branch , Islamic Azad University, Lahijan , Iran
3 - Department of Accounting , Rasht Branch , Islamic Azad University, Rasht , Iran
4 - Department of Accounting , Qazvin Branch , Islamic Azad University, Qazvin , Iran

Received: 2020-08-23 Accepted : 2020-08-23 Published : 2020-10-01

Keywords: Investment Efficiency, Social Responsibility, Social interest rate risk management (SIRRM), Sustainability performance,

Abstract :

Sustainability is a wide concept that contains other concepts such as social responsibility and has been investigated with concepts such as competition sustainability, reporting sustainability, and social sustainability. The present study aims to investigate the role of social interest rate risk management (SIRRM) in the relationship between sustainability performance and investment efficiency. In terms of purpose, this study is an applied one, and form the methodological point of view is a descriptive correlational study. Accordingly, the required data has been collected from 79 listed firms on Tehran Stock Exchange during 2013-2017. In this research, social risk management includes SIRRM, and sustainability performance includes sustainability of reporting, competition, and ownership. The results indicate that SIRRM reinforces the relationship between competition sustainability, reporting sustainability, and ownership sustainability with investment efficiency.

References:

[1] Ahmadi, NIA., Rostami, Sh., Sabouri, M., Investigating the Relationship Between the Indexes of the Corporate Social Responsibility and the Financial Performance Components; Evidence from Tehran Stock Exchange, Journal of Management Accounting Researches, 2015, 14, P.25-42, (in Persian).

 

[2] Arabsalehi, M., Sadeghi, Gh., and Moeinaddin, M., The Relationship between Corporate Social Responsibility and Financial Performance of the Firms Listed on Tehran Stock Exchange, Journal of Empirical Research in Accounting, 2013, 3(1), P.1-20, (in Persian). Doi:10.22051/JERA.2013.586

 

[3] Bagheri, F., Sedighouraee, Gh., Yousefi, A., Social Commitment: A New Concept in Social Science or an Archaic Idea in the History of Thought, Journal of Islam and social studies, 2015, 2, P.108-144, (in Persian).

 

[4] Banker, R., Byzalov, D., and Plehn-Dujowich, J., Demand uncertainty and cost behavior, The Accounting Review, 2014, 89(3), P. 839- 865. Doi:10.2308/accr-50661,

 

[5] Benlemlih, M., and Bitar, M., Corporate Social Responsibility and Investment Efficiency, Journal of Business Ethics, 2016, 133, P. 1–25. Doi: 10.2139/ssrn.2566891

 

[6] Fakhari, H., Rezaei Pitenoei, Y., and Noroozi, M., Corporate social responsibility disclosure and investment efficiency. Journal of Financial Management Strategy, 2016, 4(4), P 85-106, (in Persian).

Doi: 10.22051/JFM.2017.11856.1152

 

[7] Ghodrati, H., and Feazi, S., The effects of corporate governance on earnings management level in Tehran Stock Exchange, Journal of Audit Science, 2015, 58, P. 205-232, (in Persian).

 

[8] Izadinia, N., Hashemi Dehchi, M., Investigating the Relation between Corporate Social Responsibility and Cost Stickiness, Management Accounting, 2017, 10(32), P. 1-12, (In Persian).

 

[9] Izadikhah, M., Farzipoor Saen, R., Roostaee, R., How to assess sustainability of suppliers in the presence of volume discount and negative data in data envelopment analysis? Annals of Operations Research, 269(1-2), P.241-267, Doi: 10.1007/s10479-018-2790-6

 

[10] Izadikhah, M., Farzipoor Saen, R., Ahmadi, K., How to assess sustainability of suppliers in the presence of dual-role factor and volume discounts? A data envelopment analysis approach, Asia-Pacific Journal of Operational Research, 34(03), 1740016, Doi:10.1142/S0217595917400164

 

[11] Khodamipour, A., and Masoudzadeh, R., Strategy Review of Impression Management of Stakeholders by Disclosure of Annual Reports, Journal of Accounting knowledge, 2017, 8(1), P. 51-74, (in Persian).

 

[12] Khorrami, D., and Gholami Jamkarani, R., Corporate Governance Mechanisms and Managerial Optimism, Journal of Accounting knowledge, 2017, 7(27), P. 159-181, (in Persian). Doi: 10.22103/JAK.2017.1564,

 

[13] Kruger, P., Corporate Goodness and Shareholder Wealth, Journal of Financial Economics, 2015, 115(2),
P. 304-329. Doi: 10.1016/j.jfineco.2014.09.008

 

[14] Lin, C., Chang, R., and Dang, V., An Integrated Model to Explain How Corporate Social Responsibility Affects Corporate Financial Performance, Sustainability, 2015, Doi: 10.3390/su7078292.

 

[15] Namdar, N., The impact of product market competition on the relationship between integrated risk management and corporate performance, M.A. Thesis, Takestan Institution of Higher Education, Qazvin, Iran, 2016, (in Persian).

 

[16] Rashvand, F., Investigating the impacts of voluntary disclosure level on the sustainability performance of the firms listed on Tehran Stock Exchange, M.A Thesis, Islamic Azad University, Qazvin, Iran, 2018, (in Persian).

 

[17] Rezaei, F., Heidarzadeh, Sh., The Effect of CEO Reputation on Relationship between Agency Costs and Cumulative Abnormal Returns in Firms over (under)Investment, Journal of Asset Management and financing, 2014, 2(2), P. 99-122, (in Persian).

 

[18] Rezaei, F., Mohammadpour, M., Developing the relationship between corporate social responsibility and the implicit cost of capital, Journal of New Researches in Accounting and Auditing, 2017, 1(1), P. 117-138, (in Persian).

 

[19] Rezaei, F., Mousavi, A., Shahveisi, F., Developing the corporate social responsibility model and its impact on the qualitative characteristics of financial information, Journal of Management Accounting, 2017, 10(33), P.89-108, (in Persian).

 

[20] Rodriguez-Fernandez, M., Social responsibility and financial performance: The role of good corporate governance, BRQ Business Research Quarterly, 2015, 19, P. 137-151. Doi: 10.1016/j.brq.2015.08.001

 

[21] Sadok, E., and Karoui, A., Does Corporate Social Responsibility Affect Mutual Fund Performance and Flows? Journal of Banking and Finance, 2016, 77, P. 53-63. Doi: 10.1016/j.jbankfin.2016.10.009 

 

[22] Saghafi, A., Bolu, Gh., and Mohammadian, M., Accounting information, free cash flow, and overinvestment, Journal of Accounting Advances, 2011, 3(2), P. 38-40, (in Persian).

 

[23] Salewski, M., Henning, Z., The Association between Corporate Social Responsibility (CSR) and Earnings Quality: Evidence from European Blue Chips, Leipzig HHL Leipzig Graduate School of Management, 2014, ISSN 1864-4562, ZDB-ID 2467197-6, HHL Working Paper, (131).

 

[24] Samet, M., Jarboui, A., How Does Corporate Social Responsibility Contribute to Investment Efficiency? Journal of Multinational Financial Management, 2017, 40, P. 33-46. Doi: 10.1016/j.mulfin.2017.05.007

 

[25] Siyrani, M., Seifali, H., The Impact of Product Market Competition & Corporate Governance on Cash Holdings Policies in Companies Listed on Tehran Stock Exchange, Journal of Accounting and Auditing Researches, 2014, 23, P. 102-119, (in Persian).

 

[26] Soleimany Amiri, Gh., Farshi, Z., The Effect of Bank Financing and Tax Objectives on Relationship between Financial Reporting Quality and Investment Efficiency in Companies Listed in Tehran Stock Exchange, Journal of Accounting knowledge, 2013, 3(1), P. 57-83, (in Persian).

 

[27] Soleimanzadeh, F., Investigating the relationship between corporate social responsibility and Earning Response Coefficient and corporate performance, M.A Thesis,Islamic Azad University, Qazvin, Iran, 2017, (in Persian).

 

[28] Taghizadeh Khaneghah, V., Zeinali, M., Investigating the Effect of Corporate Social Responsibility on Investment Efficiency and Innovation, Journal of Health Accounting, 2017, 2, P.1-27, (in Persian).

Doi: 10.30476/JHA.2017.39316, 16

 

[29] Tehrani, R., and Noorbakhsh, A., Investment Management, Tehran, Negahe Danesh Press, 1996, (in Persian).

 

[30] Boostani. F., Impact of Management Optimism on Investment Efficiency and Company Value, M.A. Thesis, Takestan Institution of Higher Education, Qazvin, Iran, 2015, (in Persian).

 

[31] Hassas Yeganeh Y., Babajani, J., Taghi, Taghavifard, M., Arianpoor, A., Analysis of Environmental Sustainability Performance and its impact on the cost of equity in companies listed in Tehran Stock exchange, Iranian journal of Value & Behavioral Accounting, 2018, 3(5), P.1-39.

 

[32] Brockett, A., Rezaee, Z., Corporate Sustainability: Integrating Performance and Reporting, John Wiley and Sons, Inc., Hoboken, NJ, ISBN: 978-1-118-12236-5 ,2013.

 

[33] El Ghoul, S., Karoui, A., Does Corporate Social Responsibility Affect Mutual Fund Performance and Flows? Journal of Banking and Finance, 2017, Doi: 10.1016/j.jbankfin.2016.10.009, 77: 53-63.

 

[34] Gupta, K., Environmental sustainability and implied cost of equity: international evidence, Journal of Business Ethics, 2018, 147(2), P.343-365. Doi: 10.1007/s10551-015-2971-z

 

[35] Rezaeea , Z., Tuo, Ling., Voluntary disclosure of non-financial information and its  association with sustainability per-formance, Advances in Accounting , 2017, Doi: 10.1016/j.adiac.2017.08.001, 39: 47-59.

 

[36] Perry, S. J., Hunter, E. M., Currall, S. C., Managing the Innovators: Organizational and Professional Commitment among Scientists and Engineers, Research Policy, 2016, Doi: 10.1016/j.respol.2016.03.009, 45: 1247-1262.

 

[37] NA, A. C., Rezaee, Z., Business Sustainability Performance and Cost of Equity Capital, Journal of Corporate Finance, 2015, 34, P.128–149. Doi: 10.1016/j.jcorpfin.2015.08.003

 

[38] Talebnia, G., Davoudi Nasr, M., Royaei, R., Salehi Amiri, S.,Modeling the Ranking of Effective Indicators in the Corporate Social Responsibility Audit Process from the Perspective of Social Values with the Help of Multi-Criteria Decision Making, Advances in Mathematical Finance and Applications, 2019.

Doi: 10.22034/amfa.2019.1866457.1213

 

[39] Ghiabi, H., Examining the Relationship between Social Responsibility and Disclosure of Remuneration Paid to Board of Directors, Advances in Mathematical Finance and Applications, 2016, 1(1), P. 1-10.

Doi: 10.22034/amfa.2016.526239

 

[40] Mohammadtalebi, B., Mohammadtalebi, M., Jahangiri, M., Eshghiaraghi, M., Investigating the Effect of Internal Rate of Return on Cash Re-cycling on the Abnormal Returns of Companies Accepted in Tehran Stock Exchange, Advances in Mathematical Finance and Applications, 2018, 3(3), P. 1-10.

 Doi:10.22034/amfa.2018.544942