The relationship between social responsibility performance, financial crisis and business life cycle

Abstract

This research was done with the aim of investigating the effect of social responsibility performance on the financial crisis at different stages of the company's life cycle. Research data was collected from the stock exchange. The present study is empirical in terms of purpose and descriptive-analytical in terms of inference. Also, this research is post-event in terms of research design. The statistical population of this study are all the companies listed on the Tehran Stock Exchange during the period 2012 to 2016 (5-year period). The screening method was used to select the sampling method. The total number of companies used in the study sample is 141. In this study, the research hypotheses were analysed using the collected data, using the Excel spreadsheet and EViews software. The Generalized Estimated Least Squares (EGLS) method has been used to test the research models. The results showed that there is a significant negative relationship between social responsibility performance and financial crisis. The relationship between performance of social responsibility and financial crisis in the growth stage, is stronger than in the maturity stage. The relationship between performance of social responsibility and financial crisis in the growth phase, is stronger than in the decline phase. Also, the relationship between social responsibility performance and financial crisis in the maturity stage, is stronger than in the decline stage.

Keywords

• social responsibility
• financial crisis
• company life cycle
• tehran stock exchange