Corporate Social Responsibility and Stock Price Crash Risk: Evidence from an Emerging Market

The main purpose of this study is to investigate the relationship between corporate social responsibility (CSR) and stock price crash risk of companies listed in Tehran Stock Exchange (TSE). The empirical data include ۷۵ companies listed in the TSE, over the ten-year periods of ۲۰۰۷ to ۲۰۱۶. For measuring the CSR, content analysis is used. Moreover, negative skewness has been used to measure stock price crash risk. To test research hypotheses, statistical analysis of multiple linear regression has been used. The results of our analysis indicate that there is a significant and negative relationship between CSR and stock price crash risk. The present study contributes to the literature by providing empirical evidence about the role of CSR in stock price crash risk from an Islamic and developing country.

Keywords:

Corporate social responsibility (CSR) , stock price crash risk , Tehran Stock Exchange (TSE) , Islamic country