Evaluate the Economic Consequences of the Social Responsibility of Firms (With Emphasis on Investment Efficiency)

Subject Areas : Journal of Investment Knowledge

Masoumeh  Shahsavari ¹ (Instructor, Department of Accounting, Kosar University of Bojnord, Iran (Corresponding Author))
Rasoul  Salmani ² (Msc, Accounting, Faculty of Administration & Economic Science, University of Mazandaran, Iran,)

Received: 2017-06-13 Accepted : 2017-08-31 Published : 2018-09-23

Keywords: efficiency of investment, agency costs, Corporate social responsibilit, quality of financial reporting,

Abstract :

With the rapid development of economic relations as well as reducing the state role in the economy, companies have more attention to society and social responsibility (CSR) for strengthening economic and trade relations. In this regard, the present study investigates the effect of corporate social responsibility on the investment efficiency for companies listed in stock over the period 2011 to 2015. To measure corporate social responsibility reporting is used Barzegar Chech list (1392). The results show high social responsibility has reduced inefficient investment and thus has increased the investment efficiency. In fact, these findings suggest that social responsibility by reducing the information asymmetry between management and investors and resolving agency problems, has led to increased investment efficiency.

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