Investigating the relationship between strengths and weaknesses of social responsibility with financial statement comparability (Empirical evidence from Tehran Stock Exchange)

Subject Areas : Journal of Capital Market Analysis

Hossein Eslami Mofid Abadi ¹ ( Department of Accounting and Management, Shahryar Branch, Islamic Azad University, Shahryar, Iran )
Amir Sina Rezai ² ( M.Sc. Student of Accounting, Lamei Gorgani Institute of Higher Education, Accounting Department, Gorgan, Iran )
Seyed Mohammad Reza Khalilzade ³ ( Lamei Gorgani Institute of Higher Education, Accounting Department, Gorgan, Iran, )

Received: 2022-04-03 Accepted : 2022-06-13 Published : 2022-05-22

Keywords: Strengths, weaknesses, Social Responsibility, financial statement comparability,

Abstract :

The main purpose of this study is to investigate the relationship between the strengths and weaknesses of social responsibility and the comparability of financial statements. This research is from the perspective of process, the type of data studied and the result from the type of quantitative-applied, from the perspective of purpose and logic from the type of correlation analysis and deductive-inductive and from the perspective of time dimension also from the longitudinal type of event. To test the research hypotheses, the financial information of companies listed on the Tehran Stock Exchange in the period between 2004 to 2018 has been used, so that after applying the restrictions in this research, the final sample consisting of 121 companies was selected. After the operational measurement of the research variables, in the next step, multivariate linear regression analysis techniques have been used to test the research hypotheses. Hypothesis testing is also performed using econometric software (Eviews) and statistical methods of integrated data. The results of statistical tests show that with increasing positive points of corporate social responsibility, the ability to compare financial statements also increases. In addition, the weaknesses of social responsibility Reduces the comparability of financial statements.