The Effect of Chief Executive's Political connection on Dimensions of Corporate Social Responsibility: with a Moderating Role of Chief Executive’s Efficiency

Subject Areas : Journal of Capital Market Analysis

Javad Zanganeh ¹ , Majid Ashrafi ²

1 - PhD Student of Financial Engineering, Aliabad Katoul, Branch, Islamic Azad University, Aliabad katoul , Iran.
2 - Faculty

Received: 2022-10-02 Accepted : 2023-04-05 Published : 2023-02-20

Keywords: Political connection, Dimensions of social responsibility, CEO efficiency,

Abstract :

Companies having political connections can provide valuable resources for the company. On the other hand, it is necessary for companies to invest in the field of social responsibility in order to gain the trust of society. Therefore The purpose of the present study has investigated the effect of chief executive's political connection on dimensions of corporate social responsibility due to the moderating role of chief executive’s efficiency. The dimensions of social responsibility that have been investigated in the present study include corporate responsibility in the areas of environment, social performance, human resources and products and services and for this purpose, data related to 130 corporates listed on the Tehran Stock Market during the years 2015 to 2019 were examined using multivariate regression. Findings from the test of research hypotheses showed that there is a negative and meaningful relationship between chief executive's political connection and environmental responsibility and corporate human resources responsibility, and chief executive’s efficiency moderates the relationship between chief executive's political connection and corporate environmental responsibility, and also there is no meaningful relationship between chief executive's political connection and social performance and corporate products and services responsibility.