Investigating the Impact of Social Responsibility and Liquidity Risk of Company Stocks on Fluctuations in Stock Returns in Companies Listed on Tehran Stock Exchange
Subject Areas : Financial and Behavioral Researches in Accounting
seyed ali
hosseini
1
(Associate Professor of Accounting, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran)
sara
razani
2
(PhD Student, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran)
Keywords: Liquidity Risk, Corporate Social Responsibility, stock returns fluctuations,
Abstract :
Corporate social responsibility is a key factor in the survival of any organization. Companies see social responsibility as a kind of business strategy, which increases their credibility in competitive markets and also increases their market share. . Liquidity risk and its management method has become one of the most important issues in organizations. The potential effects that this branch of risk can have on the performance of companies are sometimes so wide that they lead to the bankruptcy of these units. The present study investigates the relationship between corporate social responsibility, liquidity risk and stock return fluctuations of the Tehran Stock Exchange in the period 2015 to 2019. Sampling was performed using a systematic elimination method and The selected sample includes 140 companies. The model used in the research follows the study of Bechti et al. (2015) The results show that the liquidity risk variable has a positive and significant effect on stock return fluctuations. This means that with increasing liquidity risk, the amount of stock return fluctuations also increases. The effect of social responsibility variable on stock return fluctuations is negative and significant. Annual sales growth, company size and fixed assets have a negative and significant effect on stock return fluctuations. According to the results of both research hypotheses, the 95% confidence level is confirmed.
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