The impact of political environment and growth opportunities on the relationship between corporate social responsibility and financial performance

Daryaei, Abbas Ali; Mirehki, Mohsen

doi:10.22034/necsbm.2025.522939.1122

The impact of political environment and growth opportunities on the relationship between corporate social responsibility and financial performance

Articles in Press

Document Type : Original Article

Authors

Abbas ali Daryaei ¹

Mohsen Mirehki ²

¹ Associate Professor, Department of Accounting, Faculty of Social Sciences, Imam Khomeini International University of Qazvin, Iran

² Ph.D student, Accounting, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran

10.22034/necsbm.2025.522939.1122

Abstract

This study examines the relationship between corporate social responsibility and financial performance of firms and analyzes the moderating role of political connections and growth opportunities in this relationship. This study selected a sample of 113 companies listed on the Tehran Stock Exchange between 2014 and 2024. The findings showed that corporate social responsibility has a direct and positive effect on their financial performance. However , political connections do not have a significant moderating effect on this relationship . In contrast, growth opportunities were identified as an important moderating factor, such that in industries with high growth opportunities , the effect of social responsibility on financial performance is significantly strengthened. These findings highlight the importance of exploiting growth opportunities in order to strengthen corporate strategies. Corporate social responsibility and improving financial performance are emphasized. Finally, this study suggests that companies should use social responsibility as a tool to increase competitive advantage and improve their financial performance in environments with high growth opportunities.

Keywords

Social responsibility

financial performance

political connections

growth opportunities

Subjects