Effects of Various Influential Factors in the Realization of Social Responsibilities Based on Corporate Governance with an Emphasis on Financial Transparency

محورهای موضوعی : Financial Engineering

Navid Rafiee ¹ , Majid Zanjirdar ² , Hamidreza Ghasemi ³

1 - Department of Finance, Arak Branch, Islamic Azad University, Arak, Iran
2 - Department of Finance, Arak Branch, Islamic Azad University, Arak, Iran
3 - Department of Management, Arak Branch, Islamic Azad University, Arak, Iran

تاریخ دریافت : 1400/10/22 تاریخ پذیرش : 1401/03/01 تاریخ انتشار : 1403/03/06

کلید واژه: Social Responsibility , Corporate Governance, Financial Transparency , Path Analysis,

چکیده مقاله :

Social responsibilities could meet the needs of stakeholders invariably. Financial transparency is a key component of social responsibility and the mechanism of corporate leadership principles. The present study aimed to assess the effects and levels of various influential factors in realizing social responsibilities based on the mechanism of corporate leadership principles with an emphasis on financial transparency. We attempted to validate and grade four main factors in this research, including mandating, monitoring, infrastructural, and structural factors. For this purpose, a questionnaire was developed to assess the data of 256 corporate managers and determine the associations between these factors in the form of four main hypotheses using path analysis. According to the findings, the four mentioned factors were confirmed in terms of their impact on the realization of social responsibilities based on the mechanism of corporate leadership principles with an emphasis on financial transparency. In addition, infrastructural factors had the most significant effect on the realization of social responsibilities based on corporate governance then, Monitoring, Structural, and Mandating factors are influential, respectively. Research findings are consistent with the theoretical framework of the stakeholder theory.

چکیده انگلیسی:

Social responsibilities could meet the needs of stakeholders invariably. Financial transparency is a key component of social responsibility and the mechanism of corporate leadership principles. The present study aimed to assess the effects and levels of various influential factors in realizing social responsibilities based on the mechanism of corporate leadership principles with an emphasis on financial transparency. We attempted to validate and grade four main factors in this research, including mandating, monitoring, infrastructural, and structural factors. For this purpose, a questionnaire was developed to assess the data of 256 corporate managers and determine the associations between these factors in the form of four main hypotheses using path analysis. According to the findings, the four mentioned factors were confirmed in terms of their impact on the realization of social responsibilities based on the mechanism of corporate leadership principles with an emphasis on financial transparency. In addition, infrastructural factors had the most significant effect on the realization of social responsibilities based on corporate governance then, Monitoring, Structural, and Mandating factors are influential, respectively. Research findings are consistent with the theoretical framework of the stakeholder theory.

منابع و مأخذ:

[1]Abdussalam, M.A.T., Corporate governance from the Islamic perspective: A comparative analysis with OECD principles, Journal of Critical Perspectives on Accounting, 2009; 20(5): 556-567.Doi: 10.1016/j.cpa.2007.12.004
[2] Akisik,O.,Gal, G., Sustainability in businesses, corporate philanthropy, and accounting standards: an empirical study, Int. J. Account. Inf. Mgt, 2011; 19 (3): 304–324. Doi:10.1108/18347641111169287
[3] Allahyari, A., Pourzamani, Z., Torabi, T.,The Effectiveness of Corporate Governance Dimensions on the Relationship between Social Responsibility and Tax Justice. Management Accounting, 2018; 11(38): 27-46, (in Persian).
[4] Barzegar, G., Ghavvasi, K, M., Disclosure Level of Social Responsibility and Dividend Policy in Companies Listed in Tehran Stock Exchange, Journal of Accounting Knowledge, 2016; 7(24): 155-180. Doi: 10.22103/jak.2016.1438. (In Persian).
[5] Francisco,J.L.A.,The role of Corporate Governance and transparency in the generation of financial. BQR Business Research Quarterly. Spanish Journal of Finance and Accouing/Revista Española de Finan-ciación y Contabilidad, 2018; 47(1). Doi: 10.1080/02102412.2017.1379798
[6] Giannarakis, Corporate governance and financial characteristic effects on the extent of corporate social responsibility disclosure, Social Responsibility Journal, 2014; 10(4): 569-590. Doi: 10.1108/SRJ-02-2013-0008
[7]Hajiha, Z.,Shakeri,A., Corporate governance, disclosure of social responsibility and company value, Financial accounting and auditing research, 2019; 11(44): 175-192, (in Persian).
[8]HassasYeganeh,Y. ,Barzegar,GH., Theoretical Foundations of Corporate Social Responsibility and Re-search Paradigms in Professional Accounting. Management Accounting, 2014; 7(3):109-133. (in Persian).
[9] HassasYeganeh,Y., Pakmaram,A., Assessing the Impact of Control Dimensions and Transparency of Corporate Governance Financial Information on Corporate Profit Sharing Policy, Financial accounting and auditing research, 2012; 4(15):85-116, (in Persian).
[10] Hassas Yeganeh,Y., Sohrabi,H., Konari,M., The relationship between social responsibility reporting and corporate value, Financial accounting and auditing research, 2020; 12(45): 1-20, (in Persian).
[11] Hosseini, S., Haghighat, S., The Relationship between Corporate Governance and Community Engagement in Listed Companies of Tehran Stock Exchange, Journal of Accounting and Social Interests, 2016; 6(4): 103-128. Doi: 10.22051/ijar.2017.9132.1088, (in Persian).
[12] Hosseini, S., Haghighat, S., Investigating the moderating role of corporate financial performance on the relationship between corporate governance and social responsibility in companies listed on the Teh-ran Stock Exchange, 2nd national corporate governance conference, 2015, (in Persian)
[13] IMade Pradana, A., Sylvia, V,S. Ratna, W., Social Responsibility Disclosure, Corporate Governance and Cost of Equity Capital, Advances in Economics, Business and Management Research, Proceedings of the 6th International Accounting Conference (IAC 2017) .Doi.org/10.2991/iac-17.2018.13
[14] Islam, Z.M., Ahmed, S.U., Hasan, I., Corporate social responsibility and financial performance linkage: evidence from the banking sector of Bangladesh. Journal of Organizational Management, 2012; 1 (1): 14–21.
[15] Ionica O, D. Anca E.A., Alina,S., Erban, F.R,. Mihai ,P. and Andreea ,M,P., The Role of Environmental, Social, and Governance Disclosure in Financial Transparency, Asian Journal of Sustainability and Social Responsibility, 2020; 12(17) .Doi: 10.3390/su12176757.
[16] Jean,M,S., Marta,P,O., Frédéric,T., Corporate social responsibility and governance, Journal of Management and Governance, 2019; 23:901–912.Doi: 10.1007/s10997-019-09472-2.
[17] Karagiorgos, T., Corporate philanthropy and financial performance: an empirical analysis on Greek companies, European Research Studies Journal, 2010 ;( 4): 85-108.
[18] Lin, C.H., Yang, H.L., Liou, D.Y., The impact of corporate social responsibility on financial performance: evidence from business in Taiwan. Technology in Society, 2009; 31 (1): 56–63. Doi: 10.1016/j.techsoc.2008.10.004
[19] Liu, X., Zhang, C., Corporate governance, social responsibility information disclosure, and enterprise value in China, Journal of Cleaner Production, 2016, Doi:http://dx.doi.org/10.1016/j.jclepro.2016.09.102.
[20] Md,Shahid,U., Mohammad, B, M.,Arifur,Kh., Corporate governance and corporate social responsibility disclosures in insurance companies, International Journal of Accounting & Information Management, 2019.
[21]Mwangi, C.I., The relationship between corporate social responsibility practices and financial performance of firms in the manufacturing, construction and allied sector of the Nairobi Securities exchange. International journal of business, 2013; 3: 81–90.
[22] Paltriniere, Dreassi, A., Migliavacca, M., Piserà, S.,Islamic finance development and banking ESG scores: evidence from a cross-country analysis. Research in International Business and Finance, 2020; 51.Doi: 10.1016/j.ribaf.2019.101100
[23]Patricia,C., Antoine ,R., corporate governance and corporate social responsibility: a typology of OECD countries, Journal of Governance and Regulation, 2016; 5(2).Doi:10.22495/jgr_v5_i2_p2
[24] Puneeta, G., Implications of corporate governance on financial performance: an analytical review of governance and social reporting reforms in India, Asian Journal of Sustainability and Social Responsibility, 2018; 3(4).Doi: 10.1186/s41180-018-0020-4
[25] RahnamaRoodposhti,F., Salehi,A., Theories and Schools of Finance and Accounting, Islamic Azad University Central Tehran Branch Publications, 2011,(in Persian).
[26] Ramzan, M., How does corporate social responsibility affect financial performance, financial stabil-ity, and financial inclusion in the banking sector? Evidence from Pakistan, Research in International Business and Finance, 2021; 55.Doi: 10.1016/j.ribaf.2020.101314
[27] Ramazani,M.H., Barzegar,GH., Investigating the relationship between the level of corporate social responsibility disclosure with cash retention and the impact of corporate governance on it in the Tehran Stock Exchange between 2010 and 2015, M. Thesis, Iran,2017.(in Persian).
[28] Rostam Mazouei,N., RahnamayRoodposhti,F., Raeiszadeh, S., Poorzamani, Z., Examining and ex-plaining the effects of technical and human actors on the functions of the management accounting information system using actor network theory. Management Accounting, 2019; 12(41):P. 91-110, (in Persian).
[29]Saboohi, N., Mohamadzadeh, A., Investigating the relationship between social performance, owner-ship structure and corporate governance. Financial Accounting Knowledge, 2018; 5(1): 127-151. Doi: 10.30479/jfak.2018.1402. (in Persian).
[30] Sarkis,J., Wang,Z., Hsieh,T., CSR Performance and the Readability of CSR Reports: Too Good to be True ?Corporate Social Responsibility and Environmental Management, 2018;25(1). Doi: 10.1002/csr.1440.
[31] Sheikh, Sh,.Corporate social responsibility and firm leverage: The impact of market competition, Research in International Business and Finance, 2019;48: 496-510,
Doi: 10.1016/j.ribaf.2018.11.002
[32] Sila.I., Cek,K., The impact of environmental, social and governance dimensions of corporate social responsibility: Australian evidence, Procedia Computer Science, 2017; 120: 797-804. Doi:10.1016/j.procs.2017.11.310.
[33]Talebnia, G., Alikhani, R., maranjory, M., Assessment of the Quantitative and Nature of Social and Environmental Information Disclosure in Iran. Accounting and Auditing Review, 2012; 19(3): 43-60. Doi: 10.22059/acctgrev.2012.73237, (in Persian).
[34] Talezari,A., Bokharaeian,M., Investigating the relationship between corporate governance and corporate social responsibilities with the performance of mining companies listed on the Tehran Stock Ex-change. The first international conference on accounting and management in the third millennium, Rasht, 2015, (in Persian).
[35] Tarek,A., Ahmed, A., Tax avoidance, corporate governance, and corporate social responsibility: The case of the Egyptian capital market, Journal of International Accounting, Auditing and Taxation, 2020; 38 .Doi: 10.1016/j.intaccaudtax.2020.100304Get
[36]Torugsa, N.A., O’Donohue, W., Hecker, R., Capabilities, proactive CSR and financial performance in SMEs: empirical evidence from an Australian manufacturing industry sector. Journal of Business Ethics, 2012; 109 (4): 483–500. Doi: 10.1007/s10551-011-1141-1
[37] Zhou, S.S., Pan, W.H., Wang, Z., An empirical examination of the link between corporate philanthropy and financial performance under the China context, International Journal of Organizational Innova-tion, 2015,7 (3).
[38]www.transparency.org/cpi