Document Type : Original Article

Authors

• Akbar Bagheri ¹
• Hassan Abagheri ²
• Delaram Torabi ²
• Ebrahim Molla Ahmadi Namin ²

¹ Assistant Professor, Department of Economics, Islamshahr Branch, Islamic Azad University, Islamshahr, Iran

² PhD Student, Financial engineering, Islamshahr Branch, Islamic Azad University, Islamshahr, Iran

Abstract

The purpose of this research is to test the effect of social responsibility through the moderating role of corporate governance variables on Jones' adjusted earnings management index for the group of banks and financial institutions admitted to the Tehran Stock Exchange. In this research, the independent variables are the corporate social responsibility scorecard and corporate governance factors, Jones' adjusted earnings management index as the dependent variable, and company size, financial leverage, and age as the control variables. According to the topic and its application, the research community is for the group of banks and financial institutions active in the Tehran Stock Exchange. In this study, 41 banks and credit financial institutions were selected. In this research, the data of the desired statistical sample was used to collect for five years from 2017 to the end of 2011. In this research, multivariate regression analysis using panel data method with fixed effects examines the hypothesis. The results showed that there is a direct and significant relationship between social responsibility and the adjusted earnings management index of Jones Company. Board size and board independence as factors of corporate governance moderate the relationship between social responsibility and the Jones adjusted earnings management index. But government ownership does not affect the relationship between corporate social responsibility and the adjusted earnings management index of Jones Corporation.

Keywords

• Social responsibility
• corporate governance
• Jones Adjusted Earnings Management Index
• Banks and Financial Institutions Group
• Tehran Stock Exchange