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Investigating the Moderating Roles of Systematic Risk Elements and Corporate Governance on the Relationship between Social Responsibility and Cash Holdings

    Authors

    • Esmail Eghdami 1
    • Mehdi Meshki Miavaghi 2
    • Sina Kheradyar 3
    • Sohrab Kordrostami 4

    1 accounting, Faculty of accounting, Islamic Azad University, lahijan branch, Iran.

    2 Associate Prof., Faculty of accounting, payame Noor University, Rasht, Iran.

    3 Rasht branch, Islamic Azad University, Rasht, Iran.

    4 lahijan branch, Islamic Azad University, lahijan branch, Iran.

,

Document Type : Research Paper

10.30479/jfak.2019.10216.2435
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Abstract

Purpose: Considering the important function of elements such as cash holdings and social responsibility in the realm of accounting studies, the study of factors affecting the relationship between them is important. Therefore, the main purpose of this study is investigating the moderating role of systematic risk and corporate governance on the relationship between social responsibility and cash holding.
Methods: In order to reach the objectives of the study, 118 firms accepted in Tehran Stock Exchange between the years 2012 and 2017 have been selected, and based on compositional data analysis method, the hypotheses of the study have been tested.
Results: Based on the results of statistical tests, it has been found that systematic risk has been able to affect and increase the impact of social responsibility on the cash holdings; however, the moderating role of corporate governance on the relationship between social responsibility and cash holding was verified at 90% confidence level.
Conclusion: In order to protect stakeholders’ rights, companies that care about their duties of social responsibility need to hold more cash.Accordingly, the increase in systematic risk increases the need to take extra cash.It also seems that corporate governance reduces the need for cash holdings in companies, andthis way it is the best strategy for companies interested in investing in social issues.
Contribution: Investigating the moderating effect of corporate governance, along with systematic risk factor, can have information content in examining the effect of social responsibility on cash holding.
 

Keywords

  • Cash Holdings
  • Corporate Governance
  • Social Responsibility
  • Systematic Risk
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References
References
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    • Article View: 1,297
    • PDF Download: 1,231
Financial Accounting Knowledge
Volume 6, Issue 4 - Serial Number 23
February 2020
Pages 135-156
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How to cite
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  • Article View: 1,297
  • PDF Download: 1,231

APA

Eghdami, E. , Meshki Miavaghi, M. , Kheradyar, S. and Kordrostami, S. (2020). Investigating the Moderating Roles of Systematic Risk Elements and Corporate Governance on the Relationship between Social Responsibility and Cash Holdings. Financial Accounting Knowledge, 6(4), 135-156. doi: 10.30479/jfak.2019.10216.2435

MLA

Eghdami, E. , , Meshki Miavaghi, M. , , Kheradyar, S. , and Kordrostami, S. . "Investigating the Moderating Roles of Systematic Risk Elements and Corporate Governance on the Relationship between Social Responsibility and Cash Holdings", Financial Accounting Knowledge, 6, 4, 2020, 135-156. doi: 10.30479/jfak.2019.10216.2435

HARVARD

Eghdami, E., Meshki Miavaghi, M., Kheradyar, S., Kordrostami, S. (2020). 'Investigating the Moderating Roles of Systematic Risk Elements and Corporate Governance on the Relationship between Social Responsibility and Cash Holdings', Financial Accounting Knowledge, 6(4), pp. 135-156. doi: 10.30479/jfak.2019.10216.2435

CHICAGO

E. Eghdami , M. Meshki Miavaghi , S. Kheradyar and S. Kordrostami, "Investigating the Moderating Roles of Systematic Risk Elements and Corporate Governance on the Relationship between Social Responsibility and Cash Holdings," Financial Accounting Knowledge, 6 4 (2020): 135-156, doi: 10.30479/jfak.2019.10216.2435

VANCOUVER

Eghdami, E., Meshki Miavaghi, M., Kheradyar, S., Kordrostami, S. Investigating the Moderating Roles of Systematic Risk Elements and Corporate Governance on the Relationship between Social Responsibility and Cash Holdings. Financial Accounting Knowledge, 2020; 6(4): 135-156. doi: 10.30479/jfak.2019.10216.2435

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