The Effect of Valuing Social Responsibility by Combining the Company's Life Cycle

This research examines the effect of valuing social responsibility by combining the company's life cycle. In other words, by examining the role of life cycle stages on the relationship between high social responsibility and company value, the related literature on corporate social responsibilit...

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Main Authors: Nahid Bigmoradi, Ahmad Khodamipour, Omid pourheidari
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2024-04-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_44212_af81e7b800ce577536f30fcd61a395be.pdf
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author Nahid Bigmoradi
Ahmad Khodamipour
Omid pourheidari
author_facet Nahid Bigmoradi
Ahmad Khodamipour
Omid pourheidari
author_sort Nahid Bigmoradi
collection DOAJ
description This research examines the effect of valuing social responsibility by combining the company's life cycle. In other words, by examining the role of life cycle stages on the relationship between high social responsibility and company value, the related literature on corporate social responsibility will be expanded to the less researched area in Iran. The statistical population of the research is the companies listed on the Tehran Stock Exchange. A sample of 115 companies from 2006 to 2021 is 1725 company-year. Multiple panel regression methods and STATA version 17 statistical software were used to test the hypotheses. The results show that although social responsibility and company value generally have a positive relationship, this relationship is conditional on the company's life cycle stages. The effect of each dimension of social responsibility on the company's value is different in the life cycle stages. Social responsibility's social and governance aspects predict higher firm value in all life cycle periods, but this effect is more significant in the decline period. The environmental aspect of social responsibility generally positively impacts the firm’s value, but this effect is insignificant at different life cycle stages.
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spelling doaj-art-fdf2c929245d4163bc2bb7280bb7c5a62024-12-25T06:47:38ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422024-04-01828510010.22067/ijaaf.2024.44212.138044212The Effect of Valuing Social Responsibility by Combining the Company's Life CycleNahid Bigmoradi0Ahmad Khodamipour1Omid pourheidari2Ph.D. student of Accounting, Shahid Bahonar University of Kerman, Kerman, Iran.Shahid Bahonar University of KermanShahid Bahonar University of Kerman, Kerman, IranThis research examines the effect of valuing social responsibility by combining the company's life cycle. In other words, by examining the role of life cycle stages on the relationship between high social responsibility and company value, the related literature on corporate social responsibility will be expanded to the less researched area in Iran. The statistical population of the research is the companies listed on the Tehran Stock Exchange. A sample of 115 companies from 2006 to 2021 is 1725 company-year. Multiple panel regression methods and STATA version 17 statistical software were used to test the hypotheses. The results show that although social responsibility and company value generally have a positive relationship, this relationship is conditional on the company's life cycle stages. The effect of each dimension of social responsibility on the company's value is different in the life cycle stages. Social responsibility's social and governance aspects predict higher firm value in all life cycle periods, but this effect is more significant in the decline period. The environmental aspect of social responsibility generally positively impacts the firm’s value, but this effect is insignificant at different life cycle stages.https://ijaaf.um.ac.ir/article_44212_af81e7b800ce577536f30fcd61a395be.pdfcompany valueenvironmentsocial responsibility
spellingShingle Nahid Bigmoradi
Ahmad Khodamipour
Omid pourheidari
The Effect of Valuing Social Responsibility by Combining the Company's Life Cycle
Iranian Journal of Accounting, Auditing & Finance
company value
environment
social responsibility
title The Effect of Valuing Social Responsibility by Combining the Company's Life Cycle
title_full The Effect of Valuing Social Responsibility by Combining the Company's Life Cycle
title_fullStr The Effect of Valuing Social Responsibility by Combining the Company's Life Cycle
title_full_unstemmed The Effect of Valuing Social Responsibility by Combining the Company's Life Cycle
title_short The Effect of Valuing Social Responsibility by Combining the Company's Life Cycle
title_sort effect of valuing social responsibility by combining the company s life cycle
topic company value
environment
social responsibility
url https://ijaaf.um.ac.ir/article_44212_af81e7b800ce577536f30fcd61a395be.pdf
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