The Moderating Effect of Advertising Intensity on the Relationship between Corporate Social Responsibility and Corporate Value

Abstract

The aim of this study is to investigate the effect of social responsibility on corporate value by moderating role of advertising intensity in the companies listed in Tehran Stock Exchange. The study combined data from 74 companies for the period of 2008 to 2013 and analyzed the pooled data. This research is a correlation study whose hypotheses are tested using combined regression with pooled data through Eviews7 software. The results show that social responsibility has a significant effect on corporate value with the moderating role of advertising intensity. It means that in creasing advertising intensity, the effect of social responsibility on corporate value increases. Technical and institutional aspects of social responsibility also have positive and significant effects on these companies' value while the technical dimension had a stronger effect than institutional dimension. To control the effects of other factors on the model, control variables such as the size and leverage of the model are used.

Keywords

• Enterprise Value
• Intensity of Advertising
• Corporate Social Responsibility
• Financial performance