The role of debt cost adjustment on the relationship between social responsibility and systematic risk

Subject Areas : Journal of Capital Market Analysis

mohamad mohamadi ¹ , davod usefvand ² , hasan hemati ³

1 - خیابان بخارست خیابان ششم پلاک 32طبقه اول
2 - دانشگاه پرندک
3 - دانشگاه پرندک

Received: 2022-06-29 Accepted : 2022-11-21 Published : 2022-11-22

Keywords: Systematic Risk, Social Responsibility, debt cost,

Abstract :

Managers can influence the company's social responsibility activities with their behaviors and reduce or eliminate the effects of the company's decisions and activities in the field of social responsibility; Corporate social responsibility is a type of corporate governance that the company can use to protect stakeholders from possible misbehavior of managers and thereby reduce information ambiguity as well as debt costs. Therefore, the purpose of this study is to investigate the effect of social responsibility on systematic risk by considering the role of debt cost adjustment. This study analyzes the information of 115 companies listed on the Tehran Stock Exchange during the years 2016 to 2016. In this study, multivariate regression model has been used to test the hypotheses. The results of this study show that social responsibility has no effect on systematic risk. The results also showed that the cost of debt has no moderating effect and does not affect the relationship between social responsibility and systematic risk.