The moderating role of the non-financial performance of the product market in the relationship between ESG activities with the cost of capital of common stock in Listed Companies in the Tehran Stock Exchange.
Subject Areas : Journal of Capital Market Analysiszahra zolfaghari 1 , Naser Izadinia 2 , saeid aliahamdi 3
1 - Department of Accounting, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
2 - Associate Professor of Accounting, University of Isfahan, Administrative sciences & Economics, Isfahan, Iran.
3 - Department of Accounting, Isfahan (Khorasgan) Branch,Islamic Azad University, Isfahan, Iran
Keywords: non-financial product market performance, ESG activities, cost of capital of common stock .,
Abstract :
The cost of capital of common stock is one of the basic concepts in the field of financial literature, which plays an important role in financial decisions. Managers, to determine financial resources, must determine the cost of providing financial resources and determine the factors affecting it. Companies that have disclosed ESG responsibility in their financial reports have a lower cost of capital than other companies. Companies are investing in competitive markets at an increasing speed to compete with developed economies. Examining the evidence on competitive markets is very important to understand how environmental, social, and corporate governance activities can shape future economic growth. The purpose of this research is to investigate the moderating role of the non-financial performance of the product market in the relationship between environmental, social, and corporate governance activities with the cost of capital in companies listed on the Tehran Stock Exchange in the 6-years between 1396 and it is 1401. 147 companies were selected by systematic elimination method to test the hypotheses, and the regression method of multivariable combined data was used. The findings showed that there is a negative relationship between ESG activities with the cost of capital in companies listed on the Tehran Stock Exchange. Also, the non-financial performance of the product market has a moderating role in the relationship between ESG activities and the cost of common stock capital. The findings of the research can provide evidence for company managers to determine a competitive strategy based on non-financial and forward-looking information reporting.
آرین پور، آرش، حساس یگانه، یحیی، باباجانی، جعفر،(1398). تحلیل عملکرد پایدار اجتماعی و تاثیر آن بر هزینه سرمایه شرکت های پذیرفته شده در بورس اوراق بهادار تهران. مجله پژوهش های اقتصاد پولی و مالی دوره جدید.. 26 (18)، 155-196
اموروند، حمید رضا، پورزمانی، زهرا (1397). " شناسایی تاثیر جریان های نقدی آزاد بر رابطه عملکرد غیرمالی در بازار محصول و مخارج سرمایه ای آتی شرکت ها" فصلنامـه علمي پژوهشي دانش سرمايه گـذاري.7 (25)، 99-126
تحریری، آرش، افسای، اکرم.(1400). تاثیر افشای زیست محیطی، اجتماعی و حاکمیتی بر تلاش حسابرس و کیفیت حسابرسی. مجله دانش حسابداری.12(3)، 69-88
تقی زاده، رضا، رستمی، امین، ضیا قاسمی، میلاد.(1402)، شبکه هیات مدیره، هزینه سرمایه و ساختار سرمایه. مجله تحقیقات حسابداری و حسابرسی. (59)، 141-160
حیدرزاده، شهین، رضایی، فرزین. (1393). "تأثیر اعتبار هیأت مدیره بر رابطه بین هزینههای نمایندگی و بازده غیرعادی انباشته در شرکتهای بیش(کم) سرمایهگذار". مدیریت دارایی و تأمین مالی، 2(2)، 99-122.
خدادادی، ولی، رحیم بنابی، قدیم. (۱۳۹5). "عوامل موثر بر افشای اختیاری اطلاعات (تئوری ها و کاربردها)"، فصلنامه مطالعات حسابداری و حسابرسی، ۴(۱۶)، ۳۲-43
دریائي، عباس علی، هاشم نژاد، یعقوب، طالبیان، مهدي. (1391). "توسعه پایدار پیامد حسابداري و بازاریابی سبز و مسئولیت پذیري اجتماعی با تأکید بر راهبري شرکتی"، اولین همایش ملی حسابداري و مدیریت، اردیبهشت، دانشگاه آزاد اسلامیواحد نور.
رحمانی، علی، پارسایی، منا، محمدی خانقاه، گلشن، (1402). رتبه اعتباری و هزینه سرمایه. مجله تحقیقات مالی.(1402). 25(1)، 110-126
رحیم نژاد، سروناز، فتحی، سعید، رزیتا،مویدفر.(1401) راهبری شرکتی و هزینه نمایندگی (با رویکرد مبتنی بر مدل)و نقش میانجی سیاست های مالی،مجله چشم انداز مدیریت مالی. 12 (39)، 32-61
سجادی، زانیار، حسن زاده شادی.(1402). همبستگی درون صنعتی،تنوع سبد سهامداران عمده و هزینه سرمایه شرکت: نقش تعدیلگر حاکمیت شرکتی. مجله بررسی های حسابداری و حسابرسی.
عیدی، مصطفی، و کردستانی، غلامرضا، و رضا زاده، جواد. (1398). طراحی الگوی منسجم گزارشگری پایداری شرکت ها. پژوهش های حسابداری مالی، 11(4)، 23-44
فخاری، حسین، رضائی پیته نوئی، یاسر (1396) ارائه مدلی برای سنجش محیط اطلاعاتی شرکت مجله حسابداری مالی 9 (33)131-147
قلعه، زهرا، دستگیر، محسن، (1402). تاثیر سرمایه گذاران نهادی بر رابطه بین کیفیت گزارشگری حسابداری و هزینه سرمایه. تحقیقات حسابداری و حسابرسی. (57)، 5-28
کردستانی، غلامرضا، مجد، ضیاالدین. (1386) "بررسی رابطه بین ویژگی های کیفی سود و هزینه سرمایه سهام عادی " مجله بررسی های حسابداری و حسابرسی. 14 ( 48) 48- 104
کاشف بهرامی، فرهنگ. (1392). حاکمیت شرکتی و نقش رئیس هیات مدیره و ارتباط آن با عدم تقارن اطلاعاتی و حسابرسی داخلی. مجله حسابرس. (69)،102
مشایخی، بیتا ، حسن زاده، شادی، سماوات ، میلاد ، نظری، سعیده. (1402). افشاي مسئوليت پذيري اجتماعي شركتي و رفتار فرصت طلبانه مديريت: نقش تعديلگر حاكميت شركتي. مجله بررسی های حسابداری و حسابرسی.30 (3)، 560-589
مهرانی، ساسان، کرمی، غلامرضا،طاهری، زهرا. (1392)، ارمغان تئوری های دستوری حسابداری"، مطالعات حسابداری و حسابرسی، نشریه مطالعات حسابداری و حسابرسی. 2 (6)، 4-19
مران جوری، مهدی، علی خانی، راضیه. (1393). افشای مسئولیتهای اجتماعی و راهبری شرکتی. بررسیهای حسابداری و حسابرسی، 21(3)، 329-348.
نیکومرام، هاشم، بنی مهد، بهمن، رهنمای رودپشتی، فریدون، کیایی، علی. (1392)،" دیدگاه اقتصاد سیاسی و مدیریت سود". حسابداری مدیریت. 6 (18)، 31-43
همایون، علی، رنجبر، محمد حسین، احمدی، فائق، طالب نیا، قدرت الله.(1402) اثر افشای داوطلبانه اطلاعات غیر مالی تاریخی و آینده نگر بر عملکرد پایداری غیر مالی شرکت ها. مجله پژوهش های تجربی حسابداری. 13 (47)، 129-152
Annanziata Tarulli., Domenico Morrone, Danilo Conte., Candida Bussoli, Angeloantonio Russo. (2022). The relevance of non-financial disclosure in influencing the cost of capital: Empirical evidence from the agri-food sector. Journal: Business Strategy and the Environment. Accepted: 7 July (2022). https://www.tarjomano.com
Aragón-Correa, J. A. (1998). "Strategic proactivity and firm approach to the natural environment". Academy of Management Journal, 41(5), 556–567.
Anginer, D., Demirguc-Kunt, A., Zhu, M., (2014). How does competition affect bank systemic risk? J. Financ. Intermediate. 23 (1), 1–26.
Asante-Appiah, B. (2020). "Does the severity of a client’s negative environmental, social, and governance reputation affect audit effort and audit quality?". Journal of Accounting and Public Policy, 39(3), 106713
Barnea, A., & Rubin, A. (2010). "Corporate social responsibility as a conflict between shareholders". Journal of Business Ethics, 97(1), 71-86.
Bolton, P., Scharfstein, D. (1990). A theory of predation based on agency problems in financial contracting. American Economic Review, 80, 93–106.
Braam, G.J.M., Uit de Weerd, L., Hauck, M. and Huijbregts, M.A.J. (2016), “Determinants of corporate environmental reporting: the importance of environmental performance and assurance”, Journal of Cleaner Production, Vol. 129, pp. 724-734.
Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). "Signaling theory: A review and assessment". Journal of Management, 37(1), 39-67.
Cormier, D., & Gordon, I. M. (2001). "An examination of social and environmental reporting strategies". Accounting, Auditing & Accountability Journal.
Cormier, D., & Gordon, I. M. (2001). "An examination of social and environmental reporting strategies". Accounting, Auditing & Accountability Journal.
Claus, J., and J. Thomas. (2001). Equity premia as low as three percent? Evidence from analysts’ earnings forecasts for domestic and international stock markets. Journal of Finance (56): 1629– 1666.
Deegan, C. (2002). "Introduction: The legitimizing effect of social and environmental disclosures–a theoretical foundation". Accounting, auditing & accountability journal.
Deegan, C. (2017). "Twenty- five years of social and environmental accounting research within Critical Perspectives of Accounting: Hits, misses, and ways forward". Critical Perspectives on Accounting, 43, 65–87.
Deegan, C., & Shelly, M. (2014). "Corporate social responsibilities: Alternative perspectives about the need to legislate". Journal of Business Ethics, 121(4), 499–526.
Daske, H., L. Hail, C. Leuz, and R. Verdi. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences. Journal of Accounting Research 46: 1085-1142.
Eliwa, Y., Aboud, A., & Saleh, A. (2020). "ESG practices and the cost of debt: Evidence from EU countries". Critical Perspectives on Accounting, 102097.
Froot, K., Scharfstein, D., Stein, J. (1993). Risk management: coordinating corporate investment and financing policies. Journal of Finance, 48, 1629–1658.
Haushalter, D., Klasa, S., Maxwell, W. (2007). The influence of product market dynamics on a firm’s cash holding and hedging behavior. Journal of Financial Economics, 84, 797–825.
Garcia-Sanchez, I.-M., & Prado-Lorenzo, J.-M. (2010). The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases. Journal of Business Ethics, 391-424. Retrieved from SpringerLink.
Gilbert, D. U., & Rasche, A. (2008). "Opportunities and problems of standardized ethics initiatives–a stakeholder theory perspective". Journal of Business Ethics, 82(3), 755-773.
Gebhardt, W., Lee, C., and B. Swaminathan, B. (2001). Toward an ex-ante cost of capital. Journal of Accounting Research (39): 135–17.
Gode, D., and P. Mohanram. (2003). Inferring cost of capital using the Ohlson-Juettner model. Review of Accounting Studies (8): 399–431.
Haniffa, R. M., & Cooke, T. E. (2005). "The impact of culture and governance on corporate social reporting". Journal of accounting and public policy, 24(5), 391-430.
Hail, L., and C. Leuz. (2006). International differences in the cost of equity capital: Do legal institutions and securities regulation matter? Journal of Accounting Research (44): 485- 531.
Ilker Yilmaz. (2022). ESG-Based Sustainability Performance and its Impact on Cost of Capital: International Evidence From the Energy Sector International Journal of Applied Economics Finance and Accounting. Issn 2577-767. vol .12 no 2 pp 21-30.
Imhof. Micheal j. Scott E . seavy & David B Smith. (2017). Comparability and Cost of Equity Capital. Accounting horizon. Working paper.
Jackson, G., Bartosch, J., Avetisyan, E., Kinderman, D. and Knudsen, J.S. (2020), “Mandatory nonfinancial disclosure and its influence on CSR: an international comparison”, Journal of Business Ethics, Vol. 162 No. 2, pp. 323-342.
Kölbel, J.F., Busch, T., Jancso, L.M., (2017). "How media coverage of corporate social irresponsibility increases financial risk". Strategy. Manag. J. 38 (11), 2266–2284.
Li, S., & Liu, C. (2018). Quality of corporate social responsibility disclosure and cost of equity capital: Lessons from China. Emerging Markets Finance and Trade, 54(11), 2472-2494.Available at: https://doi.org/10.1080/1540496x.2018.1443441.
Lambert, R., Leuz, C., & Verrecchia, R. E. (2007). Accounting information, disclosure, and the cost of capital. Journal of Accounting Research 45(2), 385–420. https://doi.org/10.1111/j.1475-679X.2007.00238.x
Martínez-Ferrero, J., Ruiz-Cano, D., & García-Sánchez, I.-M. (2016). The causal link between sustainable disclosure and information asymmetry: The moderating role of the stakeholder protection context. Corporate Social Responsibility and Environmental Management, 23(5), 319-332.Available at: https://doi.org/10.1002/csr.1379.
Magnanelli, B. S., & Izzo, M. F. (2017). Corporate social performance and cost of debt: The relationship. Social Responsibility Journal., 13, 250– 265. https://doi.org/10.1108/SRJ-06-2016-0103.
Morrone, D., Schena, R., Conte, D., Bussoli, C., & Russo, A. (2021). Between saying and doing, in the end, there is the cost of capital: Evidence from the energy sector. Business Strategy and the Environment, 31(1), 390–402. https://doi.org/10.1002/bse.2900.
Mishra. Dev .R. (2011). " Does Corporate Social Responsibility Affect the Cost of Capital? " journal of Banking & Finance. vol .35, issue9 , pp 2388-2406 .(2011).
Nicola Raimo, Elbano de Nuccio, Anastasia Giakoumelou., Felice Petruzzella, Filippo Vitolla.,(2020). Non-financial information and cost of equity capital: an empirical analysis in the food and beverage industry. https://www.emerald.com/insight/0007-070X.htm
Nass Boetie. (2021), “The Effect of Environmental, Social and Corporate Governance Performance on the Cost of Capital” Evidence from Asia-Pacific Developing Countries. University of Groningen/ Faculty of economics and business. : June 3, 2021.
O’donovan, G. (2002). "Environmental disclosures in the annual report: Extending the applicability and predictive power of legitimacy theory". Accounting, Auditing & Accountability Journal.
Randy, Priem, and Andrea, Gabellone,.(2022). The Impact of a Firm’s ESG Score on Its Cost of Capital: Can a High ESG Score Serve as a Substitute for a Weaker Legal Environment? (November 25, 2022). Available at SSRN: https://ssrn.com/abstract=4286057 or http://dx.doi.org/10.2139/ssrn.4286057
Rehman, A., Baloch, Q., & Sethi, S. (2015). Understanding the relationship between firm's corporate social responsibility and financial performance: Empirical analysis. Abasyn Journal of Social Sciences, 8(1), 98e107
Saeidi, S.P.; Sofian, S.; Saeidi, P.; Saeidi, S.P.; Saaeidi, S.A.(2015) How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. J. Bus. Res. 2015, 68, 341–350. [CrossRef]
Saeidi, S.P.; Sofian, S.; Saeidi, P.;.; Saaeidi, S.A.(2015) How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. J. Bus. Res. 2015, 68, 341–350. [CrossRef].
Sheikh, S. (2018). Corporate social responsibility, product market competition, and firm value. Journal of Economics and Business, 98, 40–55. https://doi.org/10.1016/j.jeconbus.2018.07.001.
Tirole, J., (2006), The Theory of Corporate Finance, Princeton University Press, Princeton, Oxford.
Yonghuai, Chen, Tao, Li, Qing, Zeng, Bo, Zhu. (2023). Effect of ESG performance on the cost of equity capital: Evidence from China. International Review of Economics & Finance. Volume 83, January 2023, Pages 348-364.
Zhang, F.; Qin, X.; Liu, L.(2020) The Interaction Effect between ESG and Green Innovation and Its Impact on Firm Value from the Perspective of Information Disclosure. Sustainability 2020, 12, 1866. [CrossRef].