Investigating the Impact of Social Criteria on the Financial Performance of Manufacturing Companies with Emphasis on New Financial Criteria

Subject Areas : Corporate sustainability

hooman jafarpoor ¹ , Habibollah Nakhaei ² , Ghodratollah Talebnia ³

1 - Islamic Azad University , Birjand Branch
2 - Assistant professor of accounting, Birjand Branch, Islamic Azad University, Birjand
3 - Associate Department of Accounting, Research Branch of Tehran, Islamic Azad University, Tehran, Iran

Received: 2022-10-21 Accepted : 2023-05-16 Published : 2023-05-22

Keywords: Corporate Social Responsibility, Social Criteria, Economic Added Value, Market Added Value, Reformed Economic Added Value,

Abstract :

In the current research, the impact of social criteria on the financial performance of manufacturing companies was investigated with emphasis on new financial criteria in accounting.According to the studies done, there are different classifications for corporate social responsibility disclosure, which in this research is used to measure social criteria from the indicators of legal measures; social responsibility committee, market pressure, product development/market share and responding to customers' needs were used as independent variables.Also, variables of economic added value, market added value, adjusted economic added value &Tobin's Q were investigated to measure the financial performance of companies as dependent variables. In terms of classification, the present research is of the applied type and the research method is of a quantitative type and in terms of data analysis, it is descriptive of the correlation type. The data needed to test the hypotheses were collected using the stock exchange website, accompanying notes and the activity report of the board of directors to the assembly of 108manufacturing companies admitted to the Tehran Stock Exchange during the period from2013to2020and using The multivariate regression method was analyzed using the F Limer, Hausman, Brosch-Godfrey&Brosch-Pagan with the help of R software.The results of the hypothesis test showed that there is a positive and significant relationship between the indicators used in the social criteria and the new financial criteria.According to the results of the current research, company managers can be effective in improving the company's performance by considering social criteria and take steps towards improving performance and sustainable development.