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:: Volume 2, Issue 4 (1-2018) ::
aapc 2018, 2(4): 189-214 Back to browse issues page
Investigating the effect of corporate social responsibility on systemic risk and idiosyncratic risk: Using data envelopment analysis model
Hassan Ramezannia 1, Farzin Rezaei 2
1- MSc. student of accounting of Islamic Azad University, ghazvin Branch
2- Associate prof, in accounting, Qazvin Islamic Azad University, Management and accounting faculty (Corresponding author) , farzin.rezaei@qiau.ac.ir
Abstract:   (1555 Views)
The aim of this study is to investigate the influence of social responsibility on systemic risk and idiosyncratic (unsystematic) risk in firms listed in Tehran Stock Exchange. In order to calculate systemic risk and idiosyncratic risk, the market model is used and corporate social responsibility index calculated by using data envelopment analysis (input-oriented and output-oriented); for testing research hypotheses, data of 90 listed companies in Tehran Stock Exchange during 2011 to 2015 were used.  Results showed that input-oriented social responsibility and output-oriented social responsibility have a significant and negative effect on systemic risk and idiosyncratic risk. Social responsibility reduces the risk (systematic and idiosyncratic), because companies with high social capital have a great ability to deal with shocks (domestic or foreign). Particularly suitable relationships among stockholders make such companies secure like insurance, which maintains demand and supply coherently during a crisis and enhances the flexibility in sudden events and facilitates the recycling and stable growth.
Keywords: Data Envelopment Analysis, Social Responsibility, Systematic Risk, Unsystematic Risk
Full-Text [PDF 299 kb]   (1631 Downloads)    
Type of Study: Research | Subject: Special
Received: 2017/06/20 | Accepted: 2017/09/1 | Published: 2018/01/5
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Ramezannia H, Rezaei F. Investigating the effect of corporate social responsibility on systemic risk and idiosyncratic risk: Using data envelopment analysis model. aapc. 2018; 2 (4) :189-214
URL: http://aapc.khu.ac.ir/article-1-341-en.html

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