Applied Research in Financial Reporting

Applied Research in Financial Reporting

Investigating the relationship between managerial short-termism and corporate social responsibility performance: the moderating role of corporate governance and ownership structure

Document Type : Original Article

Authors
yasser shirzadi 1
kaveh parandin 1
Parvanh Motie 2
yasser khosravipoor 3
1 Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran
2 Assistant Professor Department of Accounting, Payame Noor University, Tehran, Iran
3 Department of Accounting, Brojen Branch, Islamic Azad University, Tehran. Iran
10.22034/arfr.2025.503890.2117
Abstract
Today, social responsibility is recognized as an essential and unavoidable activity within the organizational structure of companies, and various factors influence its performance level. Therefore, the aim of this research is to examine the moderating role of corporate governance and ownership structure in the relationship between managerial short-termism and social responsibility performance. The statistical population of the research consists of companies listed on the Tehran Stock Exchange. The hypotheses were tested using a sample of 720 firm-year over the period from 2018 to 2023. The results research indicate that managerial short-termism significantly has a negative impact on social responsibility performance. Furthermore, the findings suggest that strong corporate governance and non-state ownership play a crucial role in mitigating this negative impact. The results indicate that the motivation for engaging in social responsibility activities is a determining factor in the direction and intensity of the impact of managerial short-termism on social responsibility. The findings suggest that short-termism, in itself, does not necessarily have a positive or negative effect on social responsibility; rather, the motivation behind these activities determines its impact. Additionally, attention to the components of corporate governance and ownership structure can be used as an effective strategy to enhance social responsibility within organizations.
Keywords
Corporate social responsibility
managerial short-termism
corporate governance
ownership structure

  • Receive Date 02 February 2025
  • Revise Date 04 August 2025
  • Accept Date 02 September 2025