Corporate Social Responsibility Disclosure (CSRD) and Financial Distressed Risk (FDR): Does Institutional Ownership Matter?

نویسندگان

چکیده

This study aims to investigate the effect of corporate social responsibility disclosure (CSRD) on financial distressed risk (FDR) among firms listed Tehran Stock Exchange (TSE). paper also examines whether there is a negative linkage between institutional ownership as governance mechanism and bankruptcy. The final research purpose analyze if moderating owners relationship CSRD FDR too. sample consists 200 TSE 2013 2018, statistical model logistic regression. When assessed under both Article 141 Iran’s business law Altman Z-score model, our results main hypotheses are quite similar. Considering cultural conditions economic situation Iranian market, show that with high level CSR not able make themselves more creditworthy do have better access financing, resulting in insolvency. Our findings confirm shareholders play vital role facilitating firm’s emergence from demonstrate distress less seen companies disclose information. In other words, since goals related long-term investors horizon towards company, presence within firm push managers provide additional voluntary so can maintain trust their at highest possible prevent distress. analysis indicates positive association leverage failure, whereas current ratio ROA negatively connected Finally, when evidence supports relation purchase sale-related party transactions bankruptcy risk, which consistent efficient transaction hypothesis.

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ژورنال

عنوان ژورنال: Sustainability

سال: 2022

ISSN: ['2071-1050']

DOI: https://doi.org/10.3390/su14020742