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The Relationship Between Social Responsibility and Investment-Cash Flow ?Sensitivity ? and the Role of Agency Costs

Author

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  • Abdolhossein Talebi Najafabadi*

    (Assistant Prof, Accounting, Faculty of Humanity sciences, University of bojnord, bojnord, Iran)

  • Zahra Farhadi

    (Assistant Prof, Accounting, Faculty of Humanity sciences, University of bojnord, bojnord, Iran)

  • Narjes Kamali Kermani

    (Narjes Kamali Kermani)

Abstract

In this study, the relationship between social responsibility and investment-cash flow ?sensitivity ?and the role of agency costs in companies listed on Tehran Stock Exchange were investigated. To this end, 127 companies were examined during the period 2011-2016. The required data in this research was extracted, classified and calculated using Excel software and finally, the hypotheses were tested at a 95% confidence level through Eviews? ?and Stata software. The results obtained from hypothesis testing demonstrated that corporate social responsibility ?negatively moderates investment-cash flow ?sensitivity. Furthermore, no reliable evidence was found in relation to the effectiveness of agency costs in the relationship between social responsibility and investment-cash flow ?sensitivity at a 95% confidence level.

Suggested Citation

  • Abdolhossein Talebi Najafabadi* & Zahra Farhadi & Narjes Kamali Kermani, 2018. "The Relationship Between Social Responsibility and Investment-Cash Flow ?Sensitivity ? and the Role of Agency Costs," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 4(11), pages 294-302, 11-2018.
    • Handle: RePEc:arp:tjssrr:2018:p:294-302
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    References listed on IDEAS

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