The Relationship between Corporate Philanthropy and Investment Efficiency with an emphasis on the Institutional Investors Ownership
Subject Areas : Management AccountingVahid Taghizdeh Khanqah 1 , Younes Badavar Nahandi 2 , Aliasghar Mottaghi 3 , Houshang Taghizadeh 4
1 - PhD student of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
2 - Associate Professor of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
3 - Assistant Professor of Accounting, Tabriz Branch, Islamic Azad University,
4 - Professor of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
Keywords: Corporate philanthropy, Investment Efficiency, Institutional investors, Stakeholder theory,
Abstract :
According to the theory of value creation, the company goal is to increase the shareholder's wealth and pay attention to the individual interests. One of the elements that creates value is the consideration of philanthropic actions. So that doing these actions will give the company a good image and may affect the performance and investment. Therefore, the purpose of this study is to investigate the relationship between corporate philanthropy and investment efficiency with an emphasis on the ownership of institutional investors at companies listed in Tehran Stock Exchange. Thus, 90 companies were selected for the period of 2010-2017. In order to measure the corporate philanthropy, donations and to measure of investment efficiency, the proposed model based on Iran investment environment was used. A multivariate regression model was used to analyze the data and test hypotheses. The results showed that there is a positive and significant relationship between corporate philanthropy and investment efficiency. That is, humanitarian activities will reduce information asymmetry and increase investment efficiency. Also due to the role of institutional investors, the relationship between company philanthropy and investment efficiency in an environment with institutional investors was investigated. The results showed that institutional investors have a positive impact on corporate philanthropy and investment efficiency. Indeed, in a high regulatory environment, humanitarian action leads to optimal investment.
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