Title: The effect of social responsibility on financial performance with emphasis on the moderating role of risk management

Authors: Nasrin Dadashi; Seyyed Saeb Mousavi; Ali Mayeli

Addresses: Department of Accounting, Faculty of Management, Islamic Azad University, Rasht, Iran ' Department of Accounting, Faculty of Management, Islamic Azad University, Rasht, Iran ' Department of Applied Mathematics and Statistics, Stony Brook University (SUNY), New York, USA

Abstract: Recently, the corporate world has increasingly made efforts to invest in corporate social responsibility and risk management, also known as competitive advantage in strategic resources. This study intends to examine the effect of social responsibility on financial performance, emphasising the moderating role of risk management of companies listed on Tehran Stock Exchange (TSE). For this purpose, 129 companies active during 2011-2018 are selected as a sample. The results show the positive significant effect of social responsibility on firm performance (ROA and Tobin's Q ratio). Risk management has a direct and positive significant effect on firm performance and an indirect effect on the relationship between social responsibility and ROA, while it has no effect on the relationship between social responsibility and Tobin's Q.

Keywords: social responsibility; financial performance; corporate risk management.

DOI: 10.1504/IJPQM.2024.141493

International Journal of Productivity and Quality Management, 2024 Vol.43 No.1, pp.26 - 45

Received: 04 Sep 2021
Accepted: 13 Aug 2022
Published online: 18 Sep 2024 *

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