The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran
Securities commissions regularly review corporate reports, and if the review reveals a possible deficiency— such as a potential accounting error— or requires further clarifications, they send the company a comment letter (CL), including a request for providing written responses and relative addition...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universidad de Murcia
2022-01-01
|
| Series: | Revista de Contabilidad: Spanish Accounting Review |
| Subjects: | |
| Online Access: | https://revistas.um.es/rcsar/article/view/398611 |
| _version_ | 1818980924962897920 |
|---|---|
| author | Reza Hesarzadeh |
| author_facet | Reza Hesarzadeh |
| author_sort | Reza Hesarzadeh |
| collection | DOAJ |
| description | Securities commissions regularly review corporate reports, and if the review reveals a possible deficiency— such as a potential accounting error— or requires further clarifications, they send the company a comment letter (CL), including a request for providing written responses and relative additional information. Current study aims to examine whether and how corporate social responsibility (CSR) affects CLs. This empirical study is based on a sample of 437 Iranian firm year observations from 2011 to 2017. Results show that firms with more CSR are less likely to receive CL, that more CSR does not influence the association of managerial misbehavior and CLs, and that the negative association between CSR and CLs is stronger among firms facing higher environmental information asymmetry and firms having higher corporate governance quality. Collectively, this paper contributes to the literature by providing new evidence on the beneficial effect of CSR in the context of CLs. |
| first_indexed | 2024-12-20T17:23:10Z |
| format | Article |
| id | doaj.art-3aa3353b57b643d683d5a3cbce39e5c4 |
| institution | Directory Open Access Journal |
| issn | 1138-4891 1988-4672 |
| language | English |
| last_indexed | 2024-12-20T17:23:10Z |
| publishDate | 2022-01-01 |
| publisher | Universidad de Murcia |
| record_format | Article |
| series | Revista de Contabilidad: Spanish Accounting Review |
| spelling | doaj.art-3aa3353b57b643d683d5a3cbce39e5c42022-12-21T19:31:41ZengUniversidad de MurciaRevista de Contabilidad: Spanish Accounting Review1138-48911988-46722022-01-0125110.6018/rcsar.398611The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from IranReza Hesarzadeh0Ferdowsi University of MashhadSecurities commissions regularly review corporate reports, and if the review reveals a possible deficiency— such as a potential accounting error— or requires further clarifications, they send the company a comment letter (CL), including a request for providing written responses and relative additional information. Current study aims to examine whether and how corporate social responsibility (CSR) affects CLs. This empirical study is based on a sample of 437 Iranian firm year observations from 2011 to 2017. Results show that firms with more CSR are less likely to receive CL, that more CSR does not influence the association of managerial misbehavior and CLs, and that the negative association between CSR and CLs is stronger among firms facing higher environmental information asymmetry and firms having higher corporate governance quality. Collectively, this paper contributes to the literature by providing new evidence on the beneficial effect of CSR in the context of CLs.https://revistas.um.es/rcsar/article/view/398611CSROversightComment letterSpillover effectManagersEmerging markets |
| spellingShingle | Reza Hesarzadeh The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran Revista de Contabilidad: Spanish Accounting Review CSR Oversight Comment letter Spillover effect Managers Emerging markets |
| title | The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran |
| title_full | The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran |
| title_fullStr | The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran |
| title_full_unstemmed | The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran |
| title_short | The Impact of Corporate Social Responsibility on Regulatory Comment Letters: Evidence from Iran |
| title_sort | impact of corporate social responsibility on regulatory comment letters evidence from iran |
| topic | CSR Oversight Comment letter Spillover effect Managers Emerging markets |
| url | https://revistas.um.es/rcsar/article/view/398611 |
| work_keys_str_mv | AT rezahesarzadeh theimpactofcorporatesocialresponsibilityonregulatorycommentlettersevidencefromiran AT rezahesarzadeh impactofcorporatesocialresponsibilityonregulatorycommentlettersevidencefromiran |